Traders work on the floor of the New York Stock Exchange.
NYSE
U.S. stock times rose Wednesday night as traders monitored interest rates and high volatility in Washington.
The Dow Jones industrial average traded 46 points higher, or 0.1%. S&P 500 futures gained 0.2%, while Nasdaq 100 futures gained 0.1%.
Earlier in the day, the S&P 500 and Nasdaq Composite gained 0.2% and 0.4%, respectively. The Dow, meanwhile, closed flat.
Wednesday’s gains for the S&P 500 and Nasdaq came after Intel rallied nearly 7% to drive technical stocks higher. They also followed U.S. interest rates falling from their highest levels since March 2020.
The benchmark 10-year pound yield slipped to 1.09% daily after hitting a high of 1.18%. That decline came in stages when two top Federal Reserve officials noted that monetary policy will remain easy in the future.
Fed Vice Chairman said the central bank will not raise rates until inflation reaches 2%. Meanwhile, St. Louis Fed President James Bullard noted that there will be a time when policy needs to be tightened, “but boy, I wouldn’t want to put a specific date on issues at this stage. “
Rates have been rising this year amid plans for further U.S. fiscal stimulus after Democrats gained a majority in the House and Senate. Inflation expectations have been rising recently as well.
“We expect inflation in the U.S. to be higher than most expected over the next year or two,” wrote Adam Hoyes, deputy economist at Capital Economics. “At the same time, we believe that investors are overestimating how quickly the Fed will allow the currency situation to tighten. The Fed’s new average inflation flexible target framework suggests that it will allow inflation rise above 2% for some time over the coming years. “
Investors are also keeping an eye on Washington as House members vote to impress President Donald Trump for the second time – making him the first ever U.S. president ever twice – because a bipartisan massacre sparked riots in the U.S. Capitol last week.
To be sure, the market has largely fallen out of the political and civil unrest.
“Normally, we would expect risk funds to withdraw at an event like this, but the market seems to be more focused on next management at this stage,” said Brian Price, head of investment management. at the Commonwealth Finance Network. “
Subscribe to CNBC PRO for unique insights and analysis, and live business day programs from around the world.