Wall Street gains as Fed officials strike dovish tone
By Shashwat Chauhan and Ankika Biswas
(Reuters) — The S&P 500 and the Nasdaq touched three-week highs on Tuesday as dovish comments from U.S. Federal Reserve officials pushed Treasury yields lower, while investors kept a close eye on the latest developments amid escalating tensions in the Middle East.
Following the comments from top Fed officials on Monday, Atlanta Fed President Raphael Bostic said the U.S. central bank does not need to raise interest rates any further, and sees no recession ahead.
The 10-year Treasury yield came off its 16-year peak on Tuesday, on track for its steepest single-day drop in nearly seven months, as trading resumed in the U.S. bond market after Columbus Day, also known as Indigenous Peoples' Day.
«The larger picture is that the Fed is clearly shifting away from the prospect of a November rate hike,» said Thierry Wizman, global FX and interest rates strategist at Macquarie.
Megacap stocks Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), Amazon.com (NASDAQ:AMZN), Tesla (NASDAQ:TSLA) and Meta Platforms (NASDAQ:META) rose between 0.2% and 3.0%.
At 12:00 p.m. ET, the Dow Jones Industrial Average was up 267.48 points, or 0.80%, at 33,872.13, the S&P 500 was up 47.13 points, or 1.09%, at 4,382.79, and the Nasdaq Composite was up 165.62 points, or 1.23%, at 13,649.86.
Traders put the chance of interest rates remaining unchanged in November and December at around 88% and 74%, respectively, according to CME's FedWatch tool.
Remarks from a few more Fed officials including Minneapolis' Neel Kashkari, San Francisco's Mary Daly and Board Governor Christopher Waller are also expected during the day.
All 11 major S&P 500 sectors were trading higher, with consumer discretionary leading
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