MU - Stocks Rise to Begin November
Stocks gained Wednesday ahead of the Federal Reserve's latest policy decision on interest rates after closing out a terrible month.
The Dow Jones Industrials added 104.53 points, to 33,157.40.
The S&P 500 index progressed 22.11 points to 4,215.91.
The NASDAQ surged 89.37 points to 12,940.61.
Information technology stocks outperformed, gaining more than 1%. Semiconductor companies Advanced Micro Devices hiked 6% and Micron Technology added 4%. Nvidia shares were higher by 2%.
The Treasury detailed plans of the size of its future bond sales amid growing concerns of the U.S. government's rising debt load. It appeared to be in-line with what traders were expecting. The Treasury will auction $112 billion in debt next week, largely matching what Wall Street was expecting.
Private sector payrolls in October came in weaker than expected, the ADP said Wednesday. Companies added 113,000 workers last month, lower than the 130,000 anticipated by economists polled by Dow Jones.
Traders turned their eyes to Washington for the Fed's latest policy announcement. Central bankers are largely expected to keep rates steady. Fed funds futures pricing suggests a more than 99% probability that rates will remain at current levels, according to the CME FedWatch Tool.
The decision is slated for release at 2 p.m. ET, followed by a news conference with Chair Jerome Powell at 2:30 p.m. ET.
Other economic data that came out Wednesday morning showed signs of cooling in the economy and labor market. The ISM manufacturing index showed manufacturing activity contracted more than expected in October. The Job Openings and Labor Turnover Survey showed that vacancies rose slightly in September. Private sector payrolls in October came in weaker than expected, the ADP said Wednesday.
Wall Street is coming off a dismal October. The Dow slid 1.4% to end the month, and the S&P 500 fell 2.2%, marking the first three-month losing streak for both indexes since March 2020. Notably, the S&P 500 temporarily fell into correction territory. The NASDAQ Composite dropped 2.8% in October, also falling for a third straight month.
Prices for the 10-year Treasury jumped, lowering yields to 4.81% from Tuesday's 4.92%. Treasury prices and yields move in opposite directions.
Oil prices improved one dollar to $82.02 U.S. a barrel.
Gold prices dumped $6.20 to $1,988.10.