Wall Street advances as traders mull chances of bigger Fed rate cut
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Adobe tumbles after forecasting Q4 earnings below estimates
Russell 2000 small cap index outperforms
Indexes up: Dow 0.84%, S&P 500 0.56%, Nasdaq 0.64%
Updated at 11:33 a.m. ET/1533 GMT
By Shashwat Chauhan and Purvi Agarwal
Sept 13 (Reuters) -Wall Street's main indexes rose on Friday as investors reevaluated the possibility of a bigger interest rate cut by the Federal Reserve next week, while Photoshop maker Adobe tumbled after forecasting fourth-quarter earnings below estimates.
Traders' bets of a 50-basis point rate cut jumped overnight, now standing at 43% compared with 14% on Thursday, CME's FedWatch Tool showed.
Former New York Fed President Bill Dudley said there was a strong case for a 50-bps interest rate cut. Separate media reports calling the decision "a close call" also added to the uncertainty.
"A couple of articles were published in the Wall Street Journal and the Financial Times suggesting that a 50-bps move was still in play, which has led markets to once again reevaluate their expectations," Deutsche Bank analysts said.
The Russell 2000 small cap index .RUT, which tends to benefit in a lower-rate environment, outperformed with a 2.2% jump.
The market has been seeing a reversal in U.S. equity positioning over the past three days and investors are going long heading into the Fed meeting, said Michael James, managing director of equity trading at Wedbush Securities.
Bets of the Fed sticking to a smaller 25-bps cut had firmed on Thursday following a slightly higher producer prices report that followed the August consumer prices data.
All 11 S&P 500 sectors edged higher on Friday, led by a 1.2% rise in materials stocks .SPLRCM that tracked an increase in the prices of precious metals.
Meanwhile, a survey showed U.S. consumer sentiment improved in September amid subsiding inflation, though Americans remained cautious ahead of the November presidential election.
All the three major U.S. benchmark indexes were trading near a two-week high, on track to log solid weekly gains.
The Dow Jones Industrial Average .DJI rose 343.71 points, or 0.84%, to 41,440.48, the S&P 500 .SPX gained 31.29 points, or 0.56%, to 5,627.15 and the Nasdaq Composite .IXIC gained 112.80 points, or 0.64%, to 17,682.47.
The Philadelphia SE Semiconductor index .SOX rose 1.4% to levels last seen on Sept. 2, with most chip stocks trading higher.
Among individual movers, Boeing BA.N pared losses and was last down 0.5% as its U.S. West Coast factory workers walked off the job early on Friday after overwhelmingly rejecting a contract deal.
Adobe ADBE.O slid 9.3% to a one-month low after forecasting fourth-quarter earnings below analysts' estimates, while Oracle ORCL.N jumped 2.7% after the cloud computing company raised its fiscal 2026 revenue outlook.
Chinese e-commerce firm PDD Holdings PDD.O lost 2.3% after the Biden administration said it was moving to curb low-value shipments entering the U.S. duty-free under the $800 "de minimis" threshold.
Uber UBER.N gained 4.9% after the ride-hailing platform said it would bring autonomous ride hailing to Austin, Texas, and Atlanta, in partnership with Alphabet's Waymo.
Advancing issues outnumbered decliners for a 6.71-to-1 ratio on the NYSE and a 3.62-to-1 ratio on the Nasdaq.
The S&P 500 posted 50 new 52-week highs and no new low, while the Nasdaq Composite recorded 87 new highs and 36 new lows.
Most S&P 500 sectors headed for weekly gains https://tmsnrt.rs/4d20XQR
Reporting by Shashwat Chauhan and Purvi Agarwal in Bengaluru; Editing by Shounak Dasgupta
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
