Wall Street ends higher as Fed holds key rate steady, focus turns to earnings
SPY•US stock indexes ended higher after the Federal Reserve held its key policy rate steady and upgraded its economic outlook. The S&P 500 rose 0.33%, the Nasdaq gained 0.32% and the Dow added 0.24%.
1. Markets rise after Fed decision
US stock indexes advanced after the Federal Reserve left its key policy rate unchanged, as widely expected, and upgraded its assessment of the economy while saying inflation remained elevated. Markets priced in an 87.4% likelihood of a 25-basis-point rate hike at the December meeting, up from 78.3% on Tuesday. Investors were also looking ahead to Thursday’s inflation and GDP data.
2. Earnings and index moves
With 200 S&P 500 companies having reported third-quarter results, 84% had beaten consensus estimates, and analysts estimated aggregate earnings growth of 31.8% year over year. The S&P 500 gained 25.43 points, or 0.33%, to 7,748.03; the Nasdaq Composite rose 83.42 points, or 0.32%, to 26,561.24; and the Dow Jones Industrial Average added 126.21 points, or 0.24%, to 52,503.78. Micron rose after SK Hynix reported a more than sevenfold jump in quarterly profit, while Robinhood dipped, Vertiv surged after raising its full-year forecasts, and Boston Scientific fell after trimming its annual profit forecast.
