U.S. stocks rose sharply Wednesday, stabilizing after recent sell-offs sparked growing concern over the impact of inflation on corporate profits and the wider economy. Traders are also waiting for the Federal Reserve meeting minutes later in the day, which could help clarify the monetary policy approach in the near future.
 |
| market news live updates |
The S&P 500 strengthened after Tuesday's resumption. Dow and Nasdaq are also marked at the top. Treasury products declined over the long term, and the average 10-year yield fell to just over 2.7%.
Investors this week are looking forward to a list of companies that outline the effects of inflation on their outcomes. Retailers that ranged from Walmart and Target last week to Dick's Sporting Goods (DKS) and Abercrombie & Fitch (ANF) this week lower their annual earnings forecasts as companies receive rising goods and travel costs. Elsewhere, Snap (SNAP) warned earlier this week that it would post sales results with weaker than expected this year as the macroeconomic situation “deteriorates sharply and faster than expected. This is considered to be a prelude to the bevy soft effects of advertising-driven technology, which has sent Nasdaq Composite to its low closure since Nov. 2020 on Tuesday.
As the dreaded corporate regime accumulates, Wall Street is looking for signs that rising Federal Reserve interest rates and tightening monetary policy will achieve a reduction in inflationary pressures. The Fed will issue minutes from the beginning of May at its meeting on Wednesday afternoon, which will provide more details on how policymakers were considering adjusting policy to tighten rising prices. Fed Chairman Jerome Powell earlier this month suggested that an increase of 50 additional points might be appropriate for the next two Fed meetings.
