U.S. equity indexes achieved new intraday record highs as investors eagerly anticipated the Federal Reserve's monetary policy announcement and Chairman Jerome Powell's briefings for insights on future interest rates. The Dow Jones Industrial Average experienced a slight increase of less than 0.1%, reaching 43,755.7, while the S&P 500 grew by 0.7% to 5,967.2, and the Nasdaq Composite climbed 1.3% to settle at 19,231.8.
Notably, all sectors recorded gains except for energy, financials, and industrials. Consumer discretionary, communication services, and technology sectors led this upward trend as the Fed's monetary policy-setting committee gears up for its November decision at 2 pm ET. Following the policy announcement, Powell's press briefing is expected to provide more clarity.
The CME FedWatch tool indicated a staggering 99% probability of a 25 basis-point rate cut. This follows the Fed's previous decision to slash its target rate by 50 basis points in September, marking the start of its easing cycle. The U.S. dollar index witnessed a drop of 0.6%, settling at 104.44. In the bond market, U.S.
Treasury yields decreased, with the 10-year yield falling 6.5 basis points to 4.36%, and the two-year rate down by 5.1 basis points, landing at 4.22%. Turning to economic updates, the seasonally adjusted number of initial jobless claims rose by 3,000, reaching 221,000 for the week ending Saturday.
This figure was slightly below the analyst consensus of 222,000 based on a Bloomberg survey, with the prior week’s reading adjusted upward by 2,000 to 218,000. On the corporate front, EPAM Systems ($EPAM) saw its shares surge by 14% intraday, marking it as the top gainer on the S&P 500 after posting higher Q3 adjusted earnings and revenue.
Additionally, the company revised its forecast for the year upward. Warner Bros. Discovery ($WBD) disclosed a remarkable increase in subscribers for its Max streaming platform in Q3, in conjunction with unexpected net income growth, despite a revenue decline year-over-year. Its shares soared by 11%, making it the foremost performer on the Nasdaq.
Moreover, the Federal Aviation Administration announced it would intensify its oversight of Boeing ($BA) as the company gears up to recommence production of the 737 MAX following the resolution of a strike involving 33,000 of its employees earlier in the week. Boeing’s shares rose by 2.4%, positioning the company among the leading performers on the Dow.
In commodities, West Texas Intermediate crude oil saw a marginal increase of 0.1%, priced at $71.76 per barrel..