© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., November 15, 2023. REUTERS/Brendan McDermid/File Photo
By Caroline Valetkevitch
NEW YORK (Reuters) – U.S. stocks rose on Wednesday as investors were optimistic the Federal Reserve may be done raising interest rates and that the economy is still resilient.
Among the day’s economic data, the number of Americans filing new claims for unemployment benefits fell more than expected last week. Separately, a survey showed U.S. consumers’ inflation expectations rose for a second straight month in November.
Tuesday’s minutes on the last Fed meeting showed a cautious approach toward monetary policy.
Still, stocks have risen sharply in recent weeks on the view that Fed is done hiking rates.
“Overall you have a solid backdrop to the market,” said Quincy Krosby, chief global strategist at LPL Financial (NASDAQ:) in Charlotte, North Carolina.
“The signals for the market, despite concerns over the economy and consumer spending, is that this market has sustainability in what is probably the most hospitable season for the market.”
She said stocks tend to rise just before the Thanksgiving holiday and also to rally heading into year-end. The market will be closed on Thursday for the U.S. Thanksgiving Day holiday.
The rose 127.48 points, or 0.36%, to 35,215.77, the gained 11.61 points, or 0.26%, at 4,549.8 and the added 49.74 points, or 0.35%, at 14,249.72.
The technology sector was up 0.2%, while communication services rose 0.7%.
Among the day’s negatives, Nvidia (NASDAQ:)’s shares fell 2.2% after the chip designer forecast overall fourth-quarter revenue above Wall Street targets, but warned U.S. export curbs could lead to a steep drop in sales in China.
Among other major movers, Deere (NYSE:) & Co shares were down after the farm equipment maker forecast 2024 profit below analysts’ estimates. Peer Caterpillar (NYSE:) also fell 1.7%.
Advancing issues outnumbered decliners on the NYSE by a 1.46-to-1 ratio; on Nasdaq, a 1.40-to-1 ratio favored advancers.
The S&P 500 posted 45 new 52-week highs and one new low; the Nasdaq Composite recorded 80 new highs and 89 new lows.
(This story has been refiled to correct a typo in the headline)
