The New York stock market rose slightly as it digested recent comments from US Federal Reserve (Fed) officials.
On the 18th (US eastern time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average 30 finished trading at 33,745.69, up 199.37 points (0.59%) from the battlefield.
The Standard & Poor’s (S&P) 500 index closed at 3,965.34, up 18.78 points (0.48%) from the previous day, and the Nasdaq index closed at 11,146.06, up 1.11 points (0.01%).
The three main indexes showed an upward trend, but the Dow ended the week with a weak trend, while the S&P 500 and Dow index fell 0.7% and 1.6%, respectively, showing weakness for the week.
On this day, the market made cautious moves, digesting comments from Fed officials and corporate performance.
Expectations about a possible change of direction from the Fed increased after the release of the Consumer Price Index (CPI) in October, but recent comments from Fed officials have dampened those expectations.
The previous day, the President of the Federal Reserve Bank of St Louis (Fed) James Bullard suggested a sufficiently restrictive interest rate level of 5% to 7%, causing concern in the market.
Bullard said interest rate hikes so far have had only a limited impact on inflation and are not yet sufficiently restrictive.
Susan Collins, president of the Federal Reserve Bank of Boston, also stressed the need for further rate hikes, saying on the same day that “restoring price stability remains an urgent priority, and there is clearly more work to be done .”
“A 0.75 percentage point rate hike is still on the table,” Collins said. “Every possible increase should be on the table when deciding whether they are tight enough.” This is interpreted to mean that the possibility of a 0.75 percentage point rate hike should not be completely ruled out at the Federal Open Market Committee (FOMC) in December.
According to President Bullard’s comments the day before and President Collins that day, the possibility that the Fed will raise the base rate by 0.75 percentage points at the December meeting is around 24%, up from 15 % of the previous day.
