Electric car maker Tesla and retailer Amazon.com provided the biggest boost to the S&P 500 and the Nasdaq, rising 4.9% and 2.6%, respectively.
Minutes from the May meeting of the Federal Open Market Committee, which culminated in a 50 basis point hike, the biggest increase in 22 years, showed that most committee members judged that it would “probably be appropriate” to continue raising rates. rates in June and July.
“The uniformity of opinion is a good thing,” said Ross Mayfield, an investment strategies analyst at Baird. “By the time (the Fed) gets to September, they will have plenty of economic data to make their move from there, so they continue to keep their options open.”
All three major US stock indices swung early on growing jitters over business and consumer surveys, economic data and reports suggesting a slowing economy, just as the Fed prepares to pour a bucket of cold water on facing the worst inflation in decades.
Fears that overly aggressive interest rate hikes from the Federal Reserve could tip the economy into recession, despite evidence that inflation peaked in March, have fueled concern.
The Commerce Department will release its second estimate of first-quarter GDP on Thursday, which analysts expect will show a slightly smaller contraction than the 1.4% annualized quarterly decline initially reported.
The report on personal consumption expenditures (PCE) will be published on Friday, which will provide more clues about consumer spending and whether inflation peaked in March, as other indicators suggest.
Source: Ambito
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