Stock market news live updates: Stocks leap after Powell signals rate hike slowdown – Yahoo Finance

U.S. stocks soared Wednesday afternoon as investors cheered comments from Federal Reserve Chair Jerome Powell that signaled a 50-basis-point rate hike in December.
The S&P 500 (^GSPC) rose 3.1%, while the Dow Jones Industrial Average (^DJI) was up 2%, or over 730 points. The technology-heavy Nasdaq Composite (^IXIC) gained 4.4%.
In a highly anticipated speech at the Brookings Institution in Washington, Powell said it makes sense to "moderate the pace our rate increases" as the Fed heads toward its estimated peak in benchmark interest rates. Stocks surged after the text of Powell's speech was released.
The afternoon gains came after stocks finished lower on Tuesday, even as concerns regarding China’s strict zero-COVID policy abated. U.S.-listed Chinese stocks rose for the third day, adding to record rally this month as Beijing announced plans to accelerate vaccination of China’s elderly on Tuesday, spurring optimism among investors about a path forward for easing COVID restrictions amid nationwide protests.
The U.S. dollar was weaker Wednesday, while the yield on the benchmark 10-year Treasury note slipped. In oil markets, the global benchmark Brent crude (BZ=F) climbed 2.3% to $82.90 a barrel. WTI crude oil (CL=F) rose 2.6% on Wednesday to $80.25 a barrel.
For investors, though, Powell's speech, likely his final comments before the Fed's next rate setting meeting in mid-December, was the highlight of a jam-packed day in economic data points.
The speech also comes less than two weeks before the release of November’s consumer price data.
Strategists said the market has has already “priced in” the coming rate hike slowdown and higher terminal federal funds rate, both of which Powell had already hinted at in his early November conference.
"Every cycle is clearly different but with markets increasingly confident of a terminal rate around 5% and inflation getting back close to target in 2024, it’s worth remembering that exactly a year ago today, markets were pricing a Fed Funds rate of 0.68% by the end of 2022 and CPI of 2.6% (consensus of economists)," Jim Reid, Head of Thematic Research at Deutsche Bank, wrote in a note. "We will likely have an eventual miss of c.370bps and c.500bps, respectively."
Early in the day, investors studied another wave of macroeconomic data. The ADP employment report showed that private companies added 127,000 jobs for November, below expectations of about 200,000, in further signals of a cooling labor market.
“Turning points can be hard to capture in the labor market, but our data suggest that Federal Reserve tightening is having an impact on job creation and pay gains,” Nela Richardson, chief economist at ADP, said in a statement. “In addition, companies are no longer in hyper-replacement mode. Fewer people are quitting and the post-pandemic recovery is stabilizing.”
Also on the data front:
US GDP for the 2022 third quarter increased at a 2.9% annual rate, according to a government estimate. The report also found that the Personal Consumption Expenditure (PCE) index, which measures the price of consumer goods and services, increased 4.3% in the quarter, an upward revision of 0.1 percentage point. Excluding food and energy prices, the PCE price index increased 4.6%, also revised up 0.1 percentage point.
US job openings fell to 10.33 million in October, down 10.68 from the prior month, according to the Bureau of Labor Statistics' Job Openings and Labor Turnover Survey (JOLTS) survey. Economists surveyed by Bloomberg expected job openings to dip to 10.25 million on the month.
Signed contracts to buy existing homes in the U.S. fell 4.6% in October, the fifth consecutive decline as higher rates wane on demand, data from the National Association of Realtors showed Wednesday.
The Chicago Purchasing Managers Index (PMI) fell to 37.2, below expectations of 47.0, the lowest reading since reading since June 2020.
Finally, the Fed's Beige Book, a survey of the Fed's regional banks, found that economy grew steadily and inflation slightly eased while several businesses signaled "greater uncertainty or increased pessimism" around this year end's outlook.
Shares of CrowdStrike Holdings, Inc. (CRWD) sank more than 14% after the cybersecurity company’s forecasted quarter revenue came in short of analyst expectations as clients cut back on spending and delayed purchases due to macroeconomic headwinds. DoorDash (DASH) is laying off about 1,250 people in an effort to cut expenses, according to a report from Bloomberg, citing a memo from it CEO Tony Xu.
Also in corporate news, Workday (WDAY) shares rose 17% on Wednesday after the cloud-service company reported higher revenue for the quarter and lifted its subscription revenue guidance. Salesforce (CRM) stock plummeted after hours as the company said co-CEO Bret Taylor would step down early next year.
And in crypto news, Kraken is laying off 30% of its staff as the company cited that trading volumes have fallen "significantly." Kraken's move to downsize comes in the wake of FTX's collapse earlier this month.

Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
Here’s what you need to know about trading hours ahead of the holiday weekend. The New York Stock Exchange, the Nasdaq Stock Market, and over-the-counter markets will be open standard trading hours on Friday. The Tokyo Stock Exchange, the Shanghai Stock Exchange, the Hong Kong Stock Exchange, the Frankfurt Stock Exchange, and the Paris Stock Exchange will be open their normal hours on Friday.
And what it means for your ability to build wealth.
The easiest way to justify investing in a stock is if it produces a dividend yield equal to or higher than the risk-free rate. Investing in equal parts of Ford Motor Company (NYSE: F), United Parcel Service (NYSE: UPS), and Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) produces a dividend yield of 4.4% while also granting exposure to the potential upside (or downside) of each investment.
Portfolio concentration is a big reason the Oracle of Omaha has outperformed for more than a half-century.
These high-octane income stocks, with yields ranging from 4.5% to 6%, have been popular buys among select billionaire investors.
MicroStrategy, the company of Michael Saylor, one of the most fervent evangelists of Bitcoin, has sold the king of cryptocurrencies. The firm said it bought approximately 2,395 bitcoins for approximately $42.8 million in cash, at an average price of approximately $17,871 per bitcoin, inclusive of fees and expenses, between November 1 and December 21. The transaction was made at an average price of approximately $17,871 per bitcoin, inclusive of fees and expenses.
To get a sense of who is truly in control of ZIM Integrated Shipping Services Ltd. ( NYSE:ZIM ), it is important to…
Though the majority of publicly-traded real estate investment trusts (REITs) have been recovering over the past two months, the Federal Reserve’s hawkish stance combined with the macroeconomic uncertainties raise questions regarding their latest upswing. Following the slightly hotter-than-expected inflation data released earlier this month, the Federal Reserve will likely keep up its aggressive rate hikes in 2023, which might wipe out recent gains. This comes as Fed Chair Jerome Powell stated in
Business magnate Warren Buffett is widely regarded as one of the greatest investors of the modern-day world. His seemingly unmatched and consistent value-investing strategies have earned him the title of Oracle of Omaha. Many of his investing strategies are known, but there is one that is often overlooked yet incredibly important. It’s a lot more prevalent in the startup investing world — one customer can mean all the difference for a startup but not necessarily for public companies. What happen
Diving into why investors with long-term horizons might seriously consider buying proven large-cap stocks poised to grow within essential industries heading into 2023 amid all of the uncertainty, recession fears, and selling.
There’s been a lot of talk about the downward economic pressures that have pummeled the markets in 2022 – maybe too much such talk. Yes, the S&P 500 is down almost 21%, and the NASDAQ is down 35%, but investors can still find sound opportunities. J.P. Morgan analyst Ryan Brinkman has been sorting through the automotive industry stocks, and he’s found several that are worth a closer look. So let’s do just that. We know that the auto industry has its own particular headwinds, including the ongoing
Nvidia (NASDAQ: NVDA) stock has gained some ground on the stock market of late, gaining more than 15% in the past three months and outpacing the S&P 500's gains of just 5%, in what may seem like a surprising rally given the terrible situation the company's gaming business is in right now. Let's see why this new chip platform could be a big deal for Nvidia when it hits the market in 2023.
Elon Musk's attention has been spread thin since buying Twitter in October, and Wall Street analysts continue to encourage the CEO to turn his focus back to Tesla and its waning stock.
In this article, we take a look at 15 companies that are buying back stock. If you want to see more companies that are buying back stock, go directly to 5 Companies That Are Buying Back Their Stock. Stock buybacks and dividends are the two main ways companies return excess capital back to shareholders. Unlike […]
Enphase Energy (ENPH) closed the most recent trading day at $265.49, moving -0.71% from the previous trading session.
Petrobras (PBR) closed at $10.68 in the latest trading session, marking a -1.57% move from the prior day.
Southwest Airlines is returning to a regular schedule on Friday. Tesla shares slide after a sharp gain Thursday.
Microsoft (NASDAQ: MSFT), the third-largest public company in the world by market cap, hasn't been immune to the down period that defined the 2022 stock market. The company's stock has lost over 28% year to date — which is better than the 36% decline from January to early November. With that said, at its current price levels, and with a business built to withstand rough macroeconomic conditions, Microsoft's stock is a buy in 2023.
The penultimate trading day of 2022 brought a sigh of relief for investors in shares of Enovix (NASDAQ: ENVX), QuantumScape (NYSE: QS), and ChargePoint Holdings (NYSE: CHPT). As of 11:45 a.m. ET Thursday, while QuantumScape and ChargePoint stocks were trading 6.3% and 7.2% higher respectively, Enovix stock was up a solid 13.7%. This morning, the U.S. Department of Labor reported only a marginal increase in the filings for unemployment insurance for the week ending Dec. 24.
Wednesday, the FDA approved TG Therapeutics Inc's (NASDAQ: TGTX) Briumvi (ublituximab-xiiy) for relapsing forms of multiple sclerosis (RMS). Briumvi is the first and only anti-CD20 monoclonal antibody approved for RMS that can be administered in a one-hour infusion following the starting dose. TG expects to launch Briumvi in the U.S. in 1Q23 commercially. HC Wainwright reiterates a Buy rating for the stock with a price target of $24, up from $19. The analyst writes that a faster infusion time co

source

Leave a Comment