Economy Sees Stock Market Recovery Amid Fed Rate Hike Expectations
Economic Recovery Evident in Stock Market Rebound
U.S. stocks are stabilizing Thursday following one of their worst days of the year. The S&P 500 rose 0.4% in morning trading after tumbling 2.9% when the Federal Reserve signaled fewer interest rate cuts for next year than anticipated. The Dow Jones Industrial Average gained 194 points (0.5%) by 10:05 a.m. Eastern Time, recovering from a drop of over 1,100 points the previous day. The Nasdaq composite also saw a 0.5% increase.
Key Factors Influencing Market Performance
- Darden Restaurants surged 13.4%, lifting the market after it reported profits that surpassed expectations.
- Accenture's stock rose by 6.5% following a robust earnings report.
- Amazon's stocks increased by 1.6% despite a strike affecting several of its facilities.
- Micron Technology faced a 17.4% drop after falling short of revenue forecasts.
- Lamb Weston reported a significant 19.1% decline after cutting financial targets.
Bond Market Reactions and Economic Indicators
The bond market showed mixed yields after a rise in expectations from the Fed. The 10-year Treasury yield rose to 4.56%, while the two-year yield edged back to 4.31%.
A recent report indicated the economy grew at a 3.1% annualized rate, while another suggested the job market remains solid, as fewer workers applied for unemployment benefits. However, manufacturing in the mid-Atlantic showed unexpected signs of contraction.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.