US Stocks gain after Fed minutes release

The US stocks mostly advanced in choppy trading session on Wednesday, 25 May 2022, with the Dow, the Nasdaq, and the S&P 500 closing in positive territory.

At the close of trade, the Dow Jones Industrial Average index rose by 191.66 points, or 0.6%, to 32,120.28. The S&P500 index added 37.25 points, or 0.95%, to 3,978.73. The tech-heavy Nasdaq Composite Index increased by 170.29 points, or 1.51%, to 11,434.74.

Total nine of the 11 major S&P sectors ended the session green, with consumer discretionary, energy, and information technology issues enjoying the largest%age gain.

The rebound on Wall Street came as the minutes of the latest Federal Reserve meeting revealed the Fed plans to use both interest rate increases and reductions in the size of its balance sheet to achieve a neutral posture.

The U.S. Federal Reserve's early May meeting showed a strong likelihood that the world's most powerful central bank will approve two more half-percentage-point rate hikes in coming months.

The central bank indicated it intends to move "expeditiously" to a more neutral monetary policy stance. The central bank also decided to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities on June 1.

The minutes of the meeting showed most participants agreed additional 50 basis point increases would likely be appropriate at the "next couple of meetings." However, the minutes showed participants agreed a restrictive stance of policy may become appropriate depending on the evolving economic outlook and the risks to the outlook. The Fed noted risks to the outlook for economic growth were skewed to the downside, while risks to the outlook for inflation were skewed to the upside.

ECONOMIC NEWS: The Commerce Department latest report showed that new orders for durable goods increased by 0.4% in April after climbing by a downwardly revised 0.6% in March.

Among Indian ADR, Tata Motors declined 0.07% to $27.24, Wipro fell 2.04% to $5.77, INFOSYS fell 1.41% to $18.41, WNS Holdings fell 0.57% to $71.22, and Dr Reddy's Labs fell 1.79% to $55.47. ICICI Bank added 1.53% to $18.61, Azure Power Global rose 8.71% to $15.10, and HDFC Bank added 3.87% to $56.35.

Powered by Capital Market - Live News