Stocks increased on Tuesday as a result of positive remarks made by Fed Governor Christopher Waller, which implied that interest rate hikes by the Fed might cease.
The S&P 500 gained 0.1%, while the Dow Jones Industrial Average advanced 130 points, or 0.4%, overall. In the meantime, the tech-heavy Nasdaq Composite went up 0.1%.
The policy is “present well positioned” to slow the economy and return inflation to 2 percent, Waller had stated earlier on Tuesday. He made this observation before to the December 12–13 policy meeting of the Federal Open Market Committee. Most of the time, the markets anticipate that the committee will maintain its benchmark lending rate.
This month, stocks have increased. The S&P 500 and Dow are expected to close the month 8.4% and 6.9% higher, respectively. November has seen a 10.8% increase on the technology-heavy Nasdaq.
Tuesday’s actions come after Wall Street had a dismal day. While the Nasdaq barely moved lower by 0.1%, the Dow and S&P 500 ended the day almost 0.2% lower.
The bond market has been volatile over the last three months, but it appears that some of that emotion may be beginning to subside, which would be a positive development, according to Mark Hackett, chief of investment research at Nationwide Financial. “We really haven’t been moving that violently over the last couple of weeks,” he said.
Source (CNBC)
