US benchmark equity indexes ended higher Wednesday as markets assessed minutes of the Federal Reserve's September monetary policy meeting. The minutes of the Sept. 17-18 Federal Open Market Committee meeting showed that Federal Reserve Governor Michelle Bowman was not the only participant that wanted a 25-basis point rate cut.
While the "substantial majority" preferred the 50-basis point cut, "some" participants said they thought a smaller rate cut would be appropriate, and a few others suggested they could be convinced to vote for the smaller reduction. Mortgage applications fell for the second consecutive week as the 30-year fixed rate for conforming loan balances rose to the highest since August, according to the Mortgage Bankers Association. In commodity markets, November West Texas Intermediate crude oil dipped by $0.33 to $73.24 per barrel, while December Brent crude, the global benchmark, was last seen down $0.78 to $76.40.
This decline came for a second day as slack demand and an oversized rise in US oil inventories countered the turmoil in the Middle East. In stock market news, Norwegian Cruise Line experienced a notable surge with shares jumping 11% following an upgrade from Citigroup, which raised its stock recommendation to buy from neutral and lifted its price target from $20 to $30. Conversely, Boeing shares experienced a decline of 3.4%.
The aerospace giant withdrew its latest pay offer to striking workers after negotiations with the International Association of Machinists and Aerospace Workers broke down. This move has raised concerns regarding further disruptions and impacts on Boeing's production schedules. In summary, the Fed's insights, varying responses on interest rates, fluctuations in mortgage applications, and the actions of significant players like Norwegian Cruise Line and Boeing continue to shape the market landscape.
Investors are closely monitoring these developments as they make informed decisions moving forward..