According to preliminary data, The S&P 500 gained 38.55 points, or 0.9%, to 3,980.03, while the Nasdaq Composite gained 166.41 points, or 1.5%, to 11,430.86. The Dow Jones Industrial Average advanced 192.51 points, or 0.6%, to 32,119.74.
The electric car manufacturer Tesla and retailer Amazon.com provided the biggest boost to the S&P 500 and the Nasdaq, with rises of 4.9%, and 2.6%, respectively.
The minutes of the May meeting of the Federal Open Market Committee, which culminated in a 50 basis point hike, the largest increase in 22 years, showed that most committee members judged that it “would probably be appropriate” to continue raising rates in June and July.
“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’ll have plenty of economic data to make their move from there, so they’re still keeping their options open.”
The three main stock market indices in the United States oscillated in the first hour before a growing nervous about business and consumer surveys, economic data and earnings reports suggesting a slowdown in the economyjust as the Fed prepares to pour a bucket of cold water on dealing with the worst inflation in decades.
The fear that rises in the overly aggressive interest rates of the Federal Reserve can lead to the economy to a recessiondespite evidence that inflation peaked in March, has 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 Personal Consumption Expenditure (PCE) report will be released on Friday, which will provide more clues about consumer spending and whether inflation peaked in March, as other indicators have suggested.
Source: Ambito
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