Stocks rise as investors await rate clarity from Fed

US stocks rose after the start of the session on Wednesday as investors await clarity from policymakers at the Federal Reserve on their monetary tightening plans against the backdrop of bearish economic data.

The S&P 500 rose 0.6% after the benchmark index fell for three consecutive sessions. The Dow Jones Industrial Average jumped 175 points and the Nasdaq Composite rose nearly 1%.

Shares of Peloton (Pton) rose 20% after the company said it struck a deal to sell its fitness equipment and apparel on Amazon in an effort to turn around its business and gain investor confidence.

Investors are on edge this weekend at the central bank’s annual symposium in Jackson Hole, Wyoming, where officials are likely to reiterate the Fed’s commitment to fight inflation and curb hopes of a rate cut next year.

Baird investment strategy analyst Ross Mayfield told Yahoo Finance Live that despite messaging from Federal Reserve speakers in recent weeks that rate hikes will continue through the end of the year, the market is still pricing a dovish pivot.

“I think in the last few weeks all his jaws and freshness are starting to show,” Mayfield said. “But you still have a market that I’m not sure they’ll stick to because the economy is going to slow down next year.”

At the end of the Fed’s Wyoming meeting, traders will tune in to Chair Jerome Powell’s comments for clues as to whether the next policy announcement on September 21 will result in a further 75 basis point increase or an easier 0.50% increase.

US Fed Chair Jerome Powell and Bank of England Governor Mark Carney chat during the three-day “Challenges to Monetary Policy” conference in Jackson Hole, Wyoming, US, August 23, 2019. Reuters/Jonathan Crosby TPX Images of the Day

Meanwhile, Nordstrom (JWN) shares fell nearly 15% after the department store giant trimmed its guidance for full-year sales from 5% to 7% Tuesday afternoon due to slowing demand and a buildup in inventory. done. The move comes just three months after the company raised its outlook.

“Low-income customer segments saw significantly more pullbacks to higher-income segments,” Chief Executive Officer Eric Nordstrom pointed to the typical slowdown in the store’s discount rack business during Tuesday’s earnings call.

With Nvidia (NVDA) and Salesforce.com (CRM) reporting ending Wednesday, earnings season has eased, but more earnings are in store for merchants.

In commodity markets, crude oil futures continued to rise after Saudi Arabia suggested a possible output cut by the OPEC+ alliance. WTI crude futures were up nearly 1.2% to trade above $94 a barrel, while Brent crude futures rose by a similar margin to $101 a barrel.

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Alexandra Semenova is a reporter for Yahoo Finance. follow him on twitter @alexandraandnyc

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