Stock market today: Wall Street rises to recover some of Wednesday's sell-off
U.S. stocks are stabilizing following one of their worst days of the year
NEW YORK — U.S. stocks are stabilizing Thursday following one of their worst days of the year.
The S&P 500 rose 0.6% in afternoon trading, a day after tumbling 2.9% when the Federal Reserve said it may deliver fewer cuts to interest rates next year than earlier thought. The Dow Jones Industrial Average was up 299 points, or 0.7%, as of 2:05 p.m. Eastern time, following Wednesday’s drop of more than 1,100 points. The Nasdaq composite rose 0.7%.
Indexes are still near their records, and the S&P 500 is still on track for one of its best years of the millennium. Wednesday’s drop just took some of the enthusiasm out of the market, which critics had already been warning was overly buoyant and would need everything to go correctly for it to justify its high prices.
Traders are now expecting the Federal Reserve to deliver just one or maybe two cuts to interest rates next year, according to data from CME Group. Some are even betting on none. A month ago, the majority saw at least two cuts in 2025 as a safe bet.
Wall Street loves lower interest rates because they give the economy a boost and goose prices for investments, but they can also provide fuel for inflation.
Darden Restaurants, the company behind Olive Garden and other chains, helped lift the market after leaping 15.5%. It delivered profit for the latest quarter that edged past analysts’ expectations. The operator of LongHorn Steakhouses also gave a forecast for revenue for this fiscal year that topped analysts’.
Accenture rose 7.6% after the professional services company topped expectations for profit in the latest quarter. CEO Julie Sweet said it saw growth around the world, and the company
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