US Stock Market Today: S&P 500, Nasdaq Jump After Fed Official Calls For Rate Cut
Wall Street on Friday rebounded from the previous session’s rout after a key Federal Reserve official suggested the central bank could cut interest rates again in December. This move has significant implications for Indian investors who have been closely watching the US market for cues.
US Equity Benchmark Indices Jump
All three US equity benchmark indices jumped 0.5%. The Dow Jones Industrial Average added 248 points, and the S&P 500 index gained over 30 points. The tech-heavy Nasdaq Composite regained the 22,200 level, driven by gains in major tech stocks such as Google-parent Alphabet and Microsoft.
Federal Reserve Official’s Statement
New York Federal Reserve President John Williams said the US central bank’s monetary policy is ‘modestly restrictive, although somewhat less so than before our recent actions’. This statement has been interpreted as a sign that the Fed may be open to further rate cuts, which could boost the US economy and support the stock market.
‘Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral, thereby maintaining the balance between the achievement of our two goals,’ he said, reported CNBC International.
Major Companies’ Stock Performance
Among major companies, shares of Google-parent Alphabet, drugmaker Moderna, HP, and Pfizer jumped over 3%. On the other hand, Oracle fell over 5%, chipmaker Advanced Micro Systems fell over 2%, and Microsoft shed 1.7%.
US Dollar and Treasury Bond Yields
The US dollar strengthened against major currencies. The Bloomberg Dollar Index gained 0.1% to 100.22. The pound fell 0.1%, while the yen lost 0.7%. The euro was unchanged. The yield on the 10-year Treasury bond was down 2 basis points at 4.06%.
Commodity Prices
Spot gold prices plunged 0.3% to $4,064 an ounce. International benchmark Brent oil dropped as much as 2% to $62 per barrel, but then marginally recovered after Ukraine and its European allies rejected key parts of a Russia-US plan to end the years-long war.
Implications for Indian Investors
The US stock market’s rebound has significant implications for Indian investors who have been closely watching the US market for cues. A rate cut by the Federal Reserve could lead to increased investment in emerging markets, including India, which could support the Nifty index and the Sensex index.
Conclusion
In conclusion, the US stock market’s rebound on Friday was driven by a key Federal Reserve official’s suggestion that the central bank could cut interest rates again in December. This move has significant implications for Indian investors who have been closely watching the US market for cues. As the US market continues to evolve, it is essential for Indian investors to stay informed and up-to-date on the latest developments.