US STOCKS-Wall St jumps, led by Nasdaq; data supports view Fed may be done hiking rates

Applied Energetics

14/11/2023 19:48

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      U.S. headline, core CPI growth falls short of estimates
    

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      Home Depot rises after beating profit estimates
    

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      Indexes: Dow up 1.4%, S&P 500 up 1.9%, Nasdaq up 2.2%
    

  
 (Updates to 1430 EST, adds NEW YORK dateline)
    By Caroline Valetkevitch
       NEW YORK, Nov 14 (Reuters) - U.S. stocks rose sharply on
Tuesday, led by a more than 2% gain in the Nasdaq, as
softer-than-expected inflation data supported the view that the
Federal Reserve may be done raising interest rates.
    The rate-sensitive real estate sector  .SPLRCR  was up 5.1%,
on track for its biggest daily percentage gain since November
2022, while utilities  .SPLRCU  rose 3.2% and the small-cap
Russell 2000 index  .RUT  advanced 4.7%.
    The benchmark S&P 500  .SPX  briefly crossed the 4,500 mark
for the first time in two months.
    Data showed U.S. consumer prices were unchanged in October
as Americans paid less for gasoline, and the annual rise in
underlying inflation was the smallest in two years. In the 12
months through October, the CPI climbed 3.2% - below economists'
estimates - after rising 3.7% in September.
    "Small caps have been extremely sensitive as the rates have
climbed higher," said Quincy Krosby, chief global strategist at
LPL Financial in Charlotte, North Carolina.
    The day's market rally overall "is in direct response to
that CPI report suggesting that perhaps the Fed is finished
(hiking rates), although there are questions as to whether or
not the Fed can declare victory," she said.
    Since March 2022, the Fed has hiked its policy rate 525
basis points to combat high inflation.
    The Dow Jones Industrial Average  .DJI  rose 481.07 points,
or 1.4%, to 34,818.94, the S&P 500  .SPX  gained 82.38 points,
or 1.87%, at 4,493.93 and the Nasdaq Composite  .IXIC  added
302.47 points, or 2.2%, at 14,070.21.
    Investors also focused on negotiations by U.S. lawmakers
over a funding bill as they face an end-of-week deadline to fund
the federal government.
    Among individual stocks, Snap Inc shares  SNAP.N  jumped
following news that Amazon.com  AMZN.O  will allow Snapchat
users in the United States to buy some products listed on the
ecommerce company directly from the social media app.
    Home Depot  HD.N  gained after the U.S. home improvement
chain beat quarterly profit estimates.
    Advancing issues outnumbered decliners on the NYSE by a
9.78-to-1 ratio; on Nasdaq, a 3.56-to-1 ratio favored advancers.
    The S&P 500 posted 45 new 52-week highs and no new lows; the
Nasdaq Composite recorded 102 new highs and 120 new lows.  

 (Additional reporting by Sruthi Shankar and Amruta Khandekar in
Bengaluru; additional reporting by Ankika Biswas; Editing by
Shinjini Ganguli and Richard Chang)
 ((caroline.valetkevitch@thomsonreuters.com))