Stocks rose as traders awaited minutes from the Federal Reserve’s latest policy meeting to gauge the pace of monetary tightening.
The S&P 500 erased losses, while the tech-heavy Nasdaq 100 outperformed. Wendy’s Co. surged as shareholder Trian Fund Management said it will explore a transaction that could give it control of the fast-food chain. Dick’s Sporting Goods Inc. tumbled after cutting its forecast as supply-chain issues and accelerating inflation hurt performance.
Half-point rate hikes by the Fed at each of its next two policy gatherings are no longer a sure thing in the assessment of derivatives traders. Swap contracts whose value is determined by the effective federal funds rate after Fed meeting dates traded at levels pricing in less than 100 basis points of rate hikes at the June and July meetings combined on Wednesday.
Orders placed with US factories for durable goods rose in April, highlighting firm and sustained demand for equipment and merchandise.
“Our central scenario remains that a recession can be avoided and that geopolitical risks will moderate over the course of the year, allowing equities to move higher,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “But recent market falls have underlined the importance of being selective and considering strategies that mitigate volatility.”
China’s economy is in some respects faring worse than in 2020 when the pandemic first emerged, Premier Li Keqiang said, urging efforts to reduce a soaring unemployment rate.
Here are some key events to watch this week:
- Bank of Korea rate decision Thursday
- US GDP, initial jobless claims Thursday
- US core PCE price index; personal income and spending; wholesale inventories; University of Michigan consumer sentiment Friday
Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.7% as of 10:30 a.m. New York time.
- The Nasdaq 100 rose 1%.
- The Dow Jones Industrial Average rose 0.5%.
- The Stoxx Europe 600 rose 0.8%.
- The MSCI World index rose 0.6%.
Currencies