Wall Street stocks rose on Wednesday as traders waited for details of the Federal Reserve’s opening meeting in May, which could shed further light on the future direction of monetary policy.
The S&P 500, which plunged into bear market territory last week during difficult months for global stocks, rose 0.6 percent in active trading. The high-tech Nasdaq compound rose 0.8 percent.
Wednesday’s moves were a major setback for future U.S. manufacturing output, missed expectations and continued to reveal dark outlooks for consumer-facing businesses.
Orders for long-term goods Rose 0.4 percent Refinitiv rose 0.6 percent in April from 0.6 percent in the previous month, compared to a recession and economists’ estimates. A key reading that eliminates traffic orders that could divert data, missed forecasts, rose 0.3 percent.
The central bank will release on Wednesday the minutes of its May opening rate meeting, which will affect monetary policy globally. Sent strong signals It will raise the cost of borrowing until it can control the inflation that has been running high for four decades. However, some analysts question how far the US Federal Reserve is prepared to raise rates.
“Markets tell us that the risks of a recession are increasing,” said Mary Nicola, manager of the multi-asset portfolio at Pinebridge Investments.
But in the wake of the Fed’s recent rate-fixing meeting, Nicola said, “the language that suggests a pause or whether they care about growth could obviously change how markets are priced.”
Salman Paik, Unigenes’ portfolio manager, said: “I would not be surprised if you start looking at the extra language about looking at data. This is not likely to be a really meaningful change at this point because they would like some clear indications that inflation has changed and we are not there yet.
At the corporate front, Dicks Sporting Goods on Wednesday became the latest U.S. consumer business to lower its earnings outlook, with its shares down about 7 percent. Following this a Abrasion session Investors across the stock market on Tuesday feared disappointing U.S. housing data and business research after social media group Snap Macro warned of economic conditions.
In fixed income markets, the yield on the 10-year treasury paper, which supports borrowing costs globally and declines as credit instrument prices rise, traded at 2.76 percent – a month lower.
The two-year Treasury dividend, which monitors interest rate expectations, rose more than 2.8 percent in early May, down 0.02 percentage points to 2.5 percent.
The dollar, which measures the US currency against other rivers, rose 0.3 percent, reflecting persistent uncertainty about the direction of markets and monetary policy.
The euro lost 0.5 percent against the dollar and was above $ 1.06, as stimulated by European Central Bank President Christine Lagarde. Signal The end of negative interest rates in the eurozone has disappeared.
Elsewhere, Europe’s regional Stoxx 600g gained 0.8 percent.
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