Stock market today: S&P 500, Dow jump, head for fresh records
US stocks popped on Wednesday, as two major indexes clinched fresh records. Wall Street weighed the risk of a Google breakup while dissecting the minutes from the latest Federal Reserve meeting and bracing for the latest report on consumer inflation.
The Nasdaq Composite (^IXIC) rose 0.6%. The S&P 500 (^GSPC) popped about about 0.7%, and the Dow Jones Industrial Average (^DJI) added more than 1%, or nearly 450 points. Both the Dow and S&P 500 closed at all-time highs on Wednesday, as the S&P creeped closer to its next round-numbered milestone: 5,800.
Stocks have whipsawed this week amid intense debate over the state of the economy now the Fed has finally eased up on policy. Its decision to cut by a jumbo 50 basis points raised concerns it might see risks the market could not. That has investors wondering about a "no landing," where the economy keeps growing and inflation risks once again emerge.
On Wednesday, minutes from the Fed's September meeting showed that a "substantial majority" of officials supported the half a percentage point interest rate cut. But "some participants" supported a 25 basis point interest rate cut.
Following the minutes, markets are pricing in a 24% chance the Fed doesn't cut rates at its November meeting. That's up significantly from just a day ago — and up from a 0% chance seen a week ago, per the CME FedWatch Tool.
Investors will be closely watching the release of the Consumer Price Index (CPI) report for September on Thursday morning for further clues about the Fed's rate cutting plans.
Meanwhile, investors absorbed news that the DOJ is considering asking a judge to force Google to sell off key businesses to remedy its monopoly position. Shares of owner Alphabet (GOOG) slipped in early trading, after rising in a broader tech rebound that fueled Tuesday's solid gains.
Source : Yahoo Finance - Oct 9, 2024