Los Angeles Times

Stocks climb on Fed’s rate thinking

- Associated press

Stocks closed broadly higher Wednesday on Wall Street, after the minutes from the Federal Reserve’s most recent policy meeting showed central bank officials agreed that smaller rate hikes probably would be appropriat­e “soon.”

The Standard & Poor’s 500 rose 0.6%, and the Dow Jones industrial average gained 0.3%. The Nasdaq composite closed 1% higher.

Long-term Treasury yields fell. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 3.69% from 3.76%.

At the Nov. 1-2 meeting, Fed officials expressed uncertaint­y about how long it might take for their rate hikes to slow the economy enough to tame inflation. And at a news conference afterward, Chair Jerome H. Powell stressed that the Fed wasn’t even close to declaring victory in its fight to curb high inflation. Other Fed officials in the weeks since the meeting signaled that additional hikes would still be necessary.

Still, a “substantia­l majority” of the officials believed that smaller rate hikes “would likely soon be appropriat­e,” according to the minutes of their meeting.

Crude oil prices fell 3.7%, which weighed down energy stocks.

All told, the S&P 500 rose 23.68 points to 4,027.26. The Dow gained 95.96 points to 34,194.06. The Nasdaq rose 110.91 points to 11,285.32.

The Russell 2000 index of small companies added 3.08 points, closing at 1,863.52.

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