Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: Wall Street gains after Fed minutes

Overnight Markets: Wall Street gains after Fed minutes

Wall Street rose on Wednesday, rebounding from the previous day's broad selloff, after Federal Reserve policy makers said continued stimulus doesn’t risk sparking a jump in the inflation rate.

The Dow Jones industrial average rose 159 points or 0.97%, to 16,533, the S&P 500 gained 15 points or 0.81%, to 1,888 and the Nasdaq Composite added 35 points or 0.85%, to 4,132.

Minutes of the Fed meeting showed the Fed staff presented several approaches to raising short-term interest rates, but said the discussion was simply "prudent planning" and not a sign rate increases would come any time soon.

Retail stocks were once again in the spotlight. Tiffany & Co (TIF.N) jumped 9.1% as one of the best performers on the S&P 500 after the jewelry retailer raised its full-year profit forecast. Netflix Inc. (NFLX) rose 5.1% after saying it will expand its online-video service in Europe.

Target Corp (TGT.N) reported lower quarterly profit but showed signs of progress in efforts to rebuild customer confidence. The stock ended 1% higher.

Goldman Sachs (GS.N) was the top gainer on the blue chip index, up 1.9%.

Among internet stocks, Facebook Inc. added 3.3%, while TripAdvisor Inc. and LinkedIn Corp. rose more than 1.9%. Exxon Mobil advanced 1.4% and Chevron increased 1.4%.

In Asia, shares gained for the first time in five days on Thursday in late morning trade after Fed minutes showed policy makers see a muted risk of inflation from continued US stimulus and a China manufacturing gauge exceeded estimates.

The MSCI Asia Pacific index gained 0.9% to 140 as of 9:57 a.m. in Hong Kong. Hang Seng Index gained 0.7% and the Shanghai Composite Index rose 0.3%.

Japan’s Topix index added 0.9%. Australia’s S&P/ASX 200 Index rose 0.9% and South Korea’s Kospi index was up 0.5%. New Zealand’s NZX 50 Index advanced 0.3%. Taiwan’s Taiex Index gained 0.6% and Singapore’s Straits Times Index added 0.2%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Your Business: Cover Star Club

Profile: why GWM believes in life after Lloyds

Profile: why GWM believes in life after Lloyds

Lloyds Private Banking duo Chris Payne and Tom Milson left the company two years ago after deciding to act on their belief that ‘we could do it better’

Wealth Manager on Twitter