U. S. stocks moved higher on Wednesday. Investors felt more confident because many people now believe the Federal Reserve might cut interest rates again next month.
By early morning in the U. S., the Dow was up by about one hundred points. The S and P 500 was also up, and the Nasdaq climbed even more.
Many traders are watching the Fed very closely. Several Fed officials have recently said they support lowering interest rates. This made the market feel hopeful.
New reports also showed that people in the U. S. are spending less than expected. Jobless claims also went up a lot last week. All of this makes the market think a rate cut is even more likely. According to the CME Fedwatch tool, the chance of a rate cut in December has now jumped to more than eighty percent.
Later today, the Fed will release something called the Beige Book. It is a report full of real stories from businesses around the country. It helps everyone understand how the economy is really doing. The last report showed that the economy was mostly steady, but there were early signs of trouble. More people were losing jobs, and families with lower and middle incomes were spending less.
The Fed will also look closely at inflation data before its December meeting. A key inflation report called the PCE index has been moved to December fifth.
There is also talk about a new Fed chair being announced before Christmas. The U. S. Treasury Secretary said interviews are still happening. Reports say Kevin Hassett might be the top choice. He believes interest rates should be lower than they are under the current Fed chair, Jerome Powell.
In company news, Dell’s stock went up after the company shared a very strong outlook. It expects much higher revenue in the next quarter. Demand for its AI servers has been huge. The company even raised its revenue and earnings targets for the coming years.
HP did not have good news. Its stock dropped after it shared weak guidance and announced it will cut ten percent of its employees.
Other companies also saw movement. Deere’s stock fell because its profits were lower due to weak margins on farm machines. Urban Outfitters saw its stock jump because its sales reached a record high.
Oil prices kept falling. They hit their lowest level in more than a month. There are worries that too much oil might be available soon and that a possible peace deal between Russia and Ukraine could bring more Russian oil back into global supply. Some comments from world leaders made the situation even more uncertain. U. S. crude stockpile data is expected later today.