U.S. stocks closed higher on Wall Street following the Feds comments on a gradual interest rate hike on Wednesday.
The comments came following the Federal Reserve’s meeting that they are planning a moderate and gradual interest rate hike which is expected following their next meeting in June.
The Fed also indicated that higher inflation would not result in faster rate increases and they were on track for gradual rate hikes.
U.S. Bank Private Client Wealth Management in Portland managing director, Mike Baele said that after the Feds comments that even if inflation were to rise 2 percent markets are breathing a sigh of relief knowing that faster rate increases were not necessarily on the table.
So far the Fed has raised interest rates once with investors predicting an interest rate hike following the next Fed meeting on June 12-13.
The Dow Jones Industrial Average gained 0.21 percent or 52.4 points to 24,886.81 after falling 0.7 percent earlier in the day, following the comments by the Fed.
The S&P 500 rose 8.85 points or 0.32 percent to 2,733.29- The biggest gainers of the day were S&P 500 utilities and Real Estate with the highest percentage gains.
The Nasdaq Composite gained 47.50 points or 0.64 percent to 7,425.96.
Financials fell 0.6 percent on the day.
Trade tensions between the U.S. and China continued to weigh on the markets following comments by U.S. President Donald Trump that he was unhappy with the recent talks and is planning a new direction in talks.
Also weighing on the markets is reports that Donald Trump is considering cutting exports of around 10 percent for steel and aluminium in the European Union.
Among the best performers in individual stocks was Tiffany who beat quarterly earnings surging 23.3 percent.
Ralph Lauren also saw higher margins beating analyst’s estimates gaining 14.3 percent together with home improvement retailer Lowe’s, gaining 10.4 percent after around a $1 billion stake in the company was made by Bill Ackman.
Retailer, Target stocks fell 5.7 percent, one of the biggest fallers, after higher spending on investments and higher wages made inroads into their profits.
On the New York Stock Exchange advancing issues outnumbered declines ones by a 1.07-to-1 ratio.
On the Nasdaq advancers were 1.15-to-1 ratio with the Nasdaq Composite recording 82 new highs and 42 new lows.
There were 9 new 52 week highs and 3 new lows on the S&P 500.
On U.S. exchanges around 6.4 billion shares changed hands.
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