Wall St ends higher as Fed rate hike looms

Record ID: 1688850

  • Title: Wall St ends higher as Fed rate hike looms
  • Date: 14th September 2022
  • Summary: ALLENTOWN, PENNSYLVANIA, UNITED STATES (SEPTEMBER 14, 2022) (REUTERS) (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: "Not surprisingly, after we had a more than 4% decline in the S&P 500, the market did bounce back ever so slightly, but really without conviction. So history would tell us that we probably should experience or expect some sort of volatility and lack of direction over the coming month." WHITE FLASH (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: "The PPI [Producer Price Index] did come in a little bit better than expected on a year-over-year basis, which sort of undoes some of the CPI [Consumer Price Index] excitement from yesterday. But I think it's going to have no effect whatsoever on the decision made by the FOMC [Federal Open Market Committee] at next week's meeting. And I think the Fed will certainly need to see a series of economic indicators which point to a slowdown in economic growth and a reduction in the overall inflation rate."
  • Embargoed: 28th September 2022 21:05
  • Keywords: NYSE Sam Stovall
  • Location: NEW YORK, NEW YORK + ALLENTOWN, PENNSYLVANIA, UNITED STATES
  • City: NEW YORK, NEW YORK + ALLENTOWN, PENNSYLVANIA, UNITED STATES
  • Country: USA
  • Topics: Economic Events,United States
  • Reuters ID: LVA002539014092022RP1
  • Aspect Ratio: 16:9
  • Story Text:Wall Street stocks closed higher on Wednesday (September 14) as an on-target inflation report largely stanched the flow of Tuesday's sell-off and investors pressed the "pause" button.
    All three indexes wavered throughout the day, but ultimately ended in positive territory.
    They all failed to regain meaningful ground lost in Tuesday's carnage, which wrought their largest percentage plunges in more than two years.
    The Labor Department's producer prices (PPI) data landed close to consensus estimates and provided some relief in the aftermath of Tuesday's market-rattling CPI print, which came in hotter than expected.
    The PPI report offered reassurance that inflation is indeed on a slow, downward trajectory.
    But it still has a long way to go before it approaches the Federal Reserve's average annual 2% inflation target, and while financial markets have fully priced in an interest rate hike of at least 75 basis points at the conclusion of the FOMC's policy meeting next week, they see a 28% likelihood of a super-sized, 100 basis-point increase, according to CME's FedWatch tool.
    Two-year U.S. Treasury yields, which reflect interest rate expectations, extended Tuesday's rise.
    The size and duration of further interest rate hikes going forward have many market observers concerned over the lagging effects of the Fed's tightening phase, with some viewing recession as unavoidable.
    The S&P 500 gained 13.32 points, or 0.34%, to end at 3,946.01 points, while the Nasdaq Composite gained 86.10 points, or 0.74%, to 11,719.68 The Dow Jones Industrial Average rose 30.12 points, or 0.097%, to 31,135.09.
    Of the 11 major sectors of the S&P 500, energy stocks were the top percentage gainers, boosted by rising crude prices over supply concerns.
    (Production by: Chris Dignam, Dan Fastenberg)
  • Copyright Holder: REUTERS
  • Copyright Notice: (c) Copyright Thomson Reuters 2022. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
Register