US stocks rise as Fed eyes slower rate hike pace

WALL Street stocks rose for a second straight session yesterday following Federal Reserve minutes that signalled a moderation in its aggressive policy to counter inflation.

At its latest meeting in early November, a majority of Fed policymakers found that a slower pace of interest rate hikes would “likely soon be appropriate,” according to the minutes.

The release came on the heels of mostly solid economic data and helped equities recover from a mid-session swoon.

The Dow Jones Industrial Average finished up 0.3% at 34,194.06.

The broad-based S&P 500 advanced 0.6% to 4,027.26, while the tech-rich Nasdaq Composite Index added 1.0% at 34,194.06.

Earlier, reports showed surprisingly strong orders of big-ticket US manufactured goods in October, while new home sales defied expectations and rose during the same month.

Weekly jobless claims ticked higher, while a University of Michigan survey of consumer sentiment topped expectations.

Among individual companies, Deere & Co jumped 5% as it reported higher profits on a 37% surge in revenues to US$15.5 billion (RM70.9 billion).

Deere said industry conditions remained robust as it pointed to a “continuation of strong demand for farm and construction equipment”.

Software company Autodesk slumped 5.7% after it said free cash flow would be lower than expected in the near-term because it sealed fewer multi-year contracts with up-front cash in a “challenging” macroeconomic environment.

Markets will be closed today in observance of the Thanksgiving holiday and will end trading at midday on Friday. – AFP, November 24, 2022.

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