NEW YORK, Nov 22 (Reuters) – โขU.S. stocks surged on Wednesday,โ propelled by strong โearnings reports and growing optimism about a potential Federal Reserve pivot, as โinvestors positioned themselves ahead of the Thanksgiving holiday.
The Dowโข Jones Industrial Average climbed 330.99 points, or 0.97%, to 34,347.76, the S&P 500 gained 1.03% to 4,559.34,and the Nasdaq Composite rose 1.37% to 14,250.98.โ All โคthree major indexes posted their largest daily percentage gains in over a month.
Investor sentiment was boostedโ by better-than-expected earnings from companies like Best Buy โขand Hewlett Packard Enterprise, signaling resilience in consumer spending and corporate performance. Simultaneously,minutes from the Federal โReserve’s latestโ policy meeting indicated a willingness to consider slowing the pace of interestโค rate hikes,fueling speculation that theโ central bank may beโข nearing the โend of its tightening cycle. This shift in expectations sent bond yields lower and provided further support for equities.
“The market is interpreting โคthe Fed minutes as possibly dovish, suggesting a slower pace of rate โขhikes,” saidโฃ Robert Pavlik, senior portfolio managerโ at Dakota Wealth Management. “Combined withโ solidโ earnings, this is creating a positive feedback loop.”
The energy sector lagged, โฃfalling 0.8%, as โoil prices declined amid concerns about global demand. โฃThough, technology stocks led the gains, with companies like Appleโ and Microsoftโค contributing considerably to the Nasdaq’s advance.
Trading volume is expected to be lighter than usual on Wednesday and Friday due to the Thanksgiving holiday. Investors will be closely watching economic data releases next week, including the Personal Consumption Expenditures (PCE) โขprice index, for furtherโ clues about the Fed’sโ future policy path.
