Wall St closes surge on optimism ahead of major inflation report

Wall St closes surge on optimism ahead of major inflation report

  • CPI report closes before Thursday bells
  • Bed, Bath & Beyond Expands Recent Profits
  • Indices: Dow up 0.8%, S&P 500 up 1.3%, Nasdaq up 1.8%

NEW YORK (Reuters) – The S&P 500 and Nasdaq rose as investors were optimistic ahead of an inflation report that could give the Federal Reserve room to cut interest rates. Each rose more than 1%, and the US stock market plunged Wednesday. Aggressive rate hikes.

Economists polled by Reuters forecast a highly anticipated report due Thursday, with U.S. consumer prices rising 6.5% year-on-year in December, up from a 7.1% rise in November. It shows that it is relieved.

Of the sectors, real estate (.SPLRCR) and consumer discretion (.SPLRCD) was the strongest performer of the day, while Microsoft (MSFT.O)Amazon.com (AMZN.O) and other megacap growth stocks gave the S&P 500 the biggest boost.

Benchmark indices are up so far in 2023 after plummeting last year. Expectations that the Fed could soon ease its aggressive tightening after seven Fed rate hikes in 2022 boosted the market in recent sessions. Raise interest rates to combat inflation.

“Investors expect us to be closer to the moratorium than at any point last year,” said Jake Dollarhyde, CEO of Longbow Asset Management in Tulsa, Oklahoma. would be welcomed by the market.

Also, “Whenever the year goes down, it’s not surprising that it’s reversing many times at the beginning of the new year,” he said.

Dow Jones Industrial Average (.DJI) It rose 268.91 points (0.8%) to 33,973.01 in the S&P 500. (.SPX) 50.36 points (1.28%) higher to 3,969.61 on the Nasdaq Composite (.IXIC) Added 189.04 points to 10,931.67, or 1.76%.

Financial market participants see a 75% chance of the Fed raising its benchmark interest rate by 25 basis points in February.

This week also marks the start of the fourth quarter earnings season for the S&P 500 companies, with earnings across the S&P 500 expected to decline year-over-year, according to Refinitiv’s IBES data.

The largest U.S. bank, which kicks off the season later this week, is expected to see lower quarterly earnings as tightening monetary policy raises the risk of a recession.

goldman sachs (GS.N) The company began laying off workers Wednesday as it pushed for significant cost savings, according to a source familiar with the matter. Goldman Sachs stock rose 2%.

Retailer Bed Bath & Beyond Inc (BBBY.O) Despite a dismal quarterly result, it posted a strong recent profit jump to 68.6%, prompting some investors to speculate it could be a potential acquisition target.

US exchanges traded 11.42 billion shares, averaging 11 billion shares across trading days over the last 20 days.

On the New York Stock Exchange, gainers outnumber losers by a ratio of 3.78 to 1. The Nasdaq was dominated by risers with a ratio of 2.25 to 1.

The S&P 500 has made eleven 52-week highs and one low. The Nasdaq Composite posted 98 new highs and 20 new lows.

Reported by Caroline Valetkevitch. Additional reporting by Shubham Batra and Amruta Khandekar from Bangalore. Edited by Shounak Dasgupta and Grant McCool

Our criteria: Thomson Reuters Trust Principles.

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