Highlights
Equities ended slightly higher Wednesday after a day of choppy trading on mixed economic data and Federal Reserve policy news. The Dow Jones industrial average firmed 0.4 percent, the S&P 500 rose 0.8 percent, and the NASDAQ gained 0.7 percent. Oil prices and bond yields fell while the dollar was mixed.
Equities retreated late in the day after Federal Open Market Committee minutes generally echoed hawkish takeaways from Fed Chair Jerome Powell's comments following the Fed's last rate increase. The minutes confirmed impressions the Fed officials remain resolved to bear down on inflation and do not expect rates to come down next year.
Markets earlier reacted poorly to US job openings data depicting ongoing severe tightness in labor markets. On the positive side were more signs of slowing inflation in latest manufacturing purchasers data, and more soft inflation readings from Europe, which spurred a strong showing in global fixed income markets.
Most stock sectors improved with value topping growth. Best performers included real estate, with a boost from declining market interest rates, plus autos as Tesla rebounded on bargain-hunting after Tuesday's dramatic fall. Other strong sectors included homebuilders, banks, and airlines. Tech stocks got a boost from software after Salesforce announced a major restructuring, though weakness in Microsoft after an analyst downgrade restrained tech.
On the downside, energy stocks suffered from plunging oil prices. Health care lagged on weakness in managed care, and food & beverages weighed on consumer staples.
Equities retreated late in the day after Federal Open Market Committee minutes generally echoed hawkish takeaways from Fed Chair Jerome Powell's comments following the Fed's last rate increase. The minutes confirmed impressions the Fed officials remain resolved to bear down on inflation and do not expect rates to come down next year.
Markets earlier reacted poorly to US job openings data depicting ongoing severe tightness in labor markets. On the positive side were more signs of slowing inflation in latest manufacturing purchasers data, and more soft inflation readings from Europe, which spurred a strong showing in global fixed income markets.
Most stock sectors improved with value topping growth. Best performers included real estate, with a boost from declining market interest rates, plus autos as Tesla rebounded on bargain-hunting after Tuesday's dramatic fall. Other strong sectors included homebuilders, banks, and airlines. Tech stocks got a boost from software after Salesforce announced a major restructuring, though weakness in Microsoft after an analyst downgrade restrained tech.
On the downside, energy stocks suffered from plunging oil prices. Health care lagged on weakness in managed care, and food & beverages weighed on consumer staples.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
