Indexes Gain as Fed Looks at Smaller Rate Hikes

• The minutes of the November Fed meeting were released and US stocks rose on Wednesday
• The minutes revealed that most policymakers believe it is appropriate to reduce the rate of increase, according to the majority. 
• For the Thanksgiving Day holiday, trading will be off-limits Thursday. 

US stocks rebounded from earlier losses to finish higher Wednesday. Minutes of the Federal Reserve meeting this month indicate that policymakers are willing to reduce the rate increases aimed at lowering inflation. 

Wall Street’s major indices posted a second consecutive day with gains. The S&P 500 stretched further into the 4,000 level after closing above that mark on Tuesday for the first time since September. The index gained ground in nine of its 11 sectors, led by the consumer discretionary segment.

A large majority of participants believed that a slower pace of growth would be appropriate soon. Minutes of the Fed’s meeting this month were released Wednesday afternoon. The fed funds rate has been boosted by the central bank by 75 basis points in four consecutive meetings.

 Here’s the position of US indexes at Wednesday’s 4:00 p.m. close bell: 

Since the November meeting, Fed speakers have been telegraphing that they are moving toward an easier pace in their aggressive campaign. A rate increase of 50 basis point may be in the cards for December, Quincy Krosby (chief global strategist at LPL Financial) wrote in a note. 

“It doesn’t mean that the Fed reaches its terminal rate in December – rather it could be a lower-for-longer path as the Fed assesses the lagged effect of the cumulative rates on the broader economy. While this doesn’t represent the ‘pivot’  that the market has on its holiday wish list, it does represent an important transition in monetary policy,” she said. 

Stocks were mixed on Wednesday, after the Labor Department stated Weekly jobless claims rose 17,000 to 240,000. This was higher than anticipated and represented the highest number claimed since August.  

You can find individual stocks here DeereShares rose after the heavy equipment manufacturer raised its 2023 profit outlook by $8 billion to $8.5billion. NordstromThe shares plummeted after the high-end retailer reduced its 2022 earnings outlook by $2.13 to 2.43 per share. Credit SuisseAfter the bank restructuring warned that it could lose up to 1.5 billion Swiss Francs ($1.6billion) in fourth quarter, US-listed shares plummeted 

Equity trading will close Thursday, Thanksgiving Day. It will resume on Friday, at noon Eastern. 

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