The Dow Jones Industrial Average and the S&P 500 closed at all-time highs Wednesday as traders analyzed minutes from the Federal Reserve's September monetary policy meeting. The Dow rose 1% to 42,512, while the S&P 500 increased 0.7% to 5,792. The Nasdaq Composite advanced 0.6% to 18,291.6, with health care and technology sectors leading the gains.
However, utilities and communication services saw declines, while real estate remained relatively stable. Minutes from the Federal Open Market Committee (FOMC) revealed that some members favored a 25-basis-point interest rate cut last month. Ultimately, only Fed Governor Michelle Bowman dissented against a more aggressive half percentage point move, as shown in the minutes of the FOMC's September 17-18 meeting. During the meeting, the FOMC decided to lower its benchmark lending rate by 50 basis points to a range of 4.75% to 5%, marking the first cut since March 2020.
According to a report by TD Economics, the minutes indicate that the September decision does not reflect an excessive concern about economic weaknesses or signal impending faster rate cuts. In the wake of last month’s interest-rate decision, Dallas Fed President Lorie Logan stated that a more gradual approach back to a normal policy stance will likely be necessary to effectively balance the risks associated with the dual-mandate goals of the Federal Reserve. The US two-year yield rose by 4.3 basis points to 4.02%, while the 10-year rate increased 3.8 basis points to 4.07%.
In company-specific news, Norwegian Cruise Line ($NCLH) saw its shares jump nearly 11%, making it the top gainer on the S&P 500. Citigroup upgraded the stock from neutral to buy, raising its price target from $20 to $30. Carnival ($CCL) followed as the second-best performer on the S&P 500, increasing by 7.1%, as Citigroup adjusted its price target for the cruise operator's stock from $25 to $28. On the flip side, Boeing ($BA) shares experienced a 3.4% decline, marking the steepest drop on the Dow and one of the worst performers on the S&P 500.
The company confirmed that it withdrew its latest pay offer to striking workers following failed negotiations with the International Association of Machinists and Aerospace Workers. In additional economic news, mortgage applications have decreased for the second consecutive week, as the 30-year fixed-rate for conforming loan balances reached its highest level since August, according to the Mortgage Bankers Association. Tomorrow, official data is expected to show that US consumer inflation rose by 0.1% month-over-month and 2.3% year-over-year in September, based on a consensus compiled by Bloomberg.
The US producer prices report for last month is slated for release on Friday. In the commodities market, West Texas Intermediate crude oil fell by 0.4% to $73.23 a barrel, while commercial crude stockpiles in the US increased by 5.8 million barrels to 422.7 million barrels for the week ending Friday, as reported by the Energy Information Administration.
The consensus predicted a gain of 1.6 million barrels, according to a Bloomberg poll. Gold prices dipped by 0.4% to $2,625.60 per troy ounce, whereas silver prices increased by 0.4% to $30.72 per ounce..