U.S. stocks close higher after Fed minutes signal possible rate cuts

A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York, the United States, on Aug. 21, 2024. U.S. stocks ended higher on Wednesday, after the Federal Reserve revealed its latest monetary policy meeting minutes, which hinted the U.S. central bank could cut interest rates in September. (Xinhua/Liu Yanan)
NEW YORK, Aug. 21 (Xinhua) — U.S. stocks ended higher on Wednesday, after the Federal Reserve revealed its latest monetary policy meeting minutes, which hinted the U.S. central bank could cut interest rates in September.
“The vast majority” of participants at the July 30-31 Federal Open Market Committee (FOMC) meeting “observed that, if the data continued to come in about as expected, it would likely be appropriate to ease policy at the next meeting,” the minutes said.
The Dow Jones Industrial Average rose 55.49 points, or 0.14 percent, to 40,890.49. The S&P 500 added 23.73 points, or 0.42 percent, to 5,620.85. The Nasdaq Composite Index increased by 102.05 points, or 0.57 percent, to 17,918.99.
Nine of the 11 primary S&P 500 sectors ended in green, with consumer discretionary and materials leading the gainers by going up 1.18 percent and 1.15 percent, respectively. Meanwhile, financials and energy dropped 0.14 percent and 0.01 percent, respectively.
The yield on 10-year Treasury, which is sensitive to expectations on interest-rate cuts, moved to 3.792 percent in late trading on Wednesday, hitting its lowest level in more than two weeks.
A preliminary downward revision to payroll figures indicated that U.S. job market wasn’t as strong as initially thought earlier this year. The Labor Department reported on Wednesday that U.S. employers had created 818,000 fewer jobs than previously estimated in the 12 months leading up to March.
Retail stocks saw significant movement on Wednesday following the release of earnings reports. Target shares surged 11.2 percent after the retailer posted strong quarterly results and raised its profit outlook, while Macy’s shares fell 12.9 percent due to a disappointing earnings report. ■

Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York, the United States, on Aug. 21, 2024. U.S. stocks ended higher on Wednesday, after the Federal Reserve revealed its latest monetary policy meeting minutes, which hinted the U.S. central bank could cut interest rates in September. (Xinhua/Liu Yanan)

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