This Wednesday, the stock markets in the United States experience a rise after the insinuations of a high-ranking official of the Federal Reserve on the possibility of stopping the rises in interest rates and consider cuts.
He Dow Jones Industrial Average is increasing by almost 0.2%, while the index S&P 500 advances 0.5%. For its part, the technological index Nasdaq Composite registers an increase close to 0.7%. These increases continue the upward trend of previous daysthus resuming the November rally.
Wall Street: hope for a Fed pause
Expectations about a change in monetary policy are growing following comments from the governor of the Federal Reserve, Christopher Wallerwho indicates that there is no reason to keep rates “very high” if inflation continues in a constant decline.
Despite the dissent expressed by Fed Governor Michelle Bowman, other officials support Waller’s dovish views. Chicago Fed President Austan Goolsbee expressed concern about keeping rates “too high for too long“.
Influential figures, such as the investor Bill Ackmannare now betting on rate cuts sooner than expected, even suggesting they could happen as early as the first quarter.
The 10-year Treasury yield, which behaves inversely to prices, falls approximately 6 basis points to around 4.28%, its lowest level since September.
Furthermore, the latest reading of the US Gross Domestic Product (GDP) for the third quarter indicates growth at an annualized rate of 5.2%, revised upward from 4.9% previously.
Regarding individual actions, General Motors (GM) sees an increase of close to 10% at the open, following the announcement to buy back $10 billion in shares and increase its dividend by a third.
November: an excellent month for the New York plaza
In November, the outlook on Wall Street has been surprisingly positive for the main stock indices. The S&P 500 is on track to close the month with 7.4% gains, while the Dow Jones shows an impressive 6.2% rally. For its part, the Nasdaq index, representative of the technology sector, has advanced a solid 9% so far.
These increases have led stocks on Wall Street to recover and reach their highest levels of the year. Both the S&P 500 and the Dow Jones are slightly below the values reached last July, while the Nasdaq has managed to reach annual highs, remaining only below the peaks reached during 2021.
The performance of the S&P 500 in November places it as the second best month of November since the 80sbeing surpassed only by the performance recorded in November 2020, when it experienced an impressive 10.8% growth. This month has been especially favorable for the financial market, marking a resurgence and a notable upward trend on Wall Street.
Source: Ambito
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