US Stocks Climb as Tech Giants Lead; Investors Await Powell’s Rate Signals
The US stock market closed higher on Wednesday, buoyed by gains in the technology sector, as investors focused on corporate earnings and awaited Federal Reserve Chair Jerome Powell’s remarks for insights into future interest rate policies.
Stock Market Highlights
The Dow Jones Industrial Average (DJI) rose 0.4%, adding over 200 points, while the S&P 500 (GSPC) gained 0.5%, achieving another record high. The tech-heavy Nasdaq Composite (IXIC) outperformed, climbing 0.9%, driven by strong performance in key technology stocks.
Tech giants Amazon (AMZN) and Apple (AAPL) both hit intraday all-time highs. Shares of Salesforce (CRM) surged after the company reported stronger-than-expected quarterly revenue, fueling optimism about its artificial intelligence offerings. Other tech stocks, including Okta (OKTA) and Marvell (MRVL), also rallied following favorable earnings reports.
Powell’s Speech and Rate Cut Speculation
All eyes are on Federal Reserve Chair Jerome Powell, who is set to speak in New York. Investors are eager for clues about the central bank’s plans, particularly as speculation grows around a potential rate cut in December.
Recent signals from Fed officials have indicated openness to easing monetary policy. The CME FedWatch tool now places the odds of a 25-basis-point rate cut at nearly 74%, up from 66% a week ago. The Fed’s final meeting of the year, scheduled for December 18, will be pivotal for the market’s direction heading into 2024.
Economic Indicators
Data from ADP showed private firms added 146,000 jobs in November, slightly below expectations and down from the revised 184,000 in October. The figures suggest a softening labor market but indicate resilience overall. This report is one of several key releases this week, with the highly anticipated monthly jobs report due Friday.
Global Political Developments
International developments added complexity to the day’s trading dynamics. Political turmoil in France continues, with lawmakers voting on a no-confidence motion that could topple the government. Meanwhile, in South Korea, markets reacted negatively to political instability after the president briefly declared martial law, prompting calls for impeachment.
Corporate News
In corporate headlines, UnitedHealth Group (UNH) abruptly ended its investor day following the tragic death of UnitedHealthcare CEO Brian Thompson, who was fatally shot in Manhattan earlier that morning.
Source : Swifteradio.com
