US stocks rose on Wednesday after a choppy start to the session as investors awaited clarification from Fed policy makers on their monetary tightening plans against Pessimistic economic data background.
The S&P 500 rose 0.3% after the benchmark index fell for three consecutive sessions. The Dow Jones Industrial Average added 60 points, or about 0.2%, and the Nasdaq Composite added 0.4%.
peloton (PTON) Shares rose 20.4 percent after that The company said it had struck a deal to sell its fitness equipment and apparel on Amazon in an effort to transform its business and restore investor confidence. The sports bike maker is also set to report earnings before the bell rings Thursday.
Investors are nervous about the Federal Reserve’s annual symposium in Jackson Hole, Wyoming later this week, as officials are likely to reiterate their commitment to fighting inflation and curb hopes of a rate cut next year.
Despite messages from Federal Reserve speakers in recent weeks asserting that the rate increases will continue through the end of the year, the market continues to price a bearish trend, Baird investment strategy analyst Ross Mayfield told Yahoo Finance Live.
“I think all the guts and the hawks they’ve put in the last two weeks is starting to show,” Mayfield added. “But you still have a market that I’m not quite sure they’ll stick to as the economy slows next year.”
At the end of the Wyoming Fed meeting, traders will be watching remarks from Chairman Jerome Powell for clues as to whether the next policy announcement on September 21 will lead to another 75 basis point interest rate hike or a 0.50% softening increase.
Meanwhile, Nordstrom shares (JWN) is down nearly 20% after the department store giant cut its full-year sales guidance to a range of 5% to 7% on Tuesday afternoon due to slowing demand and a backlog of inventory. The move comes just three months after the company raised its expectations.
“Low-income customer segments have seen a significant pullback against higher-income segments,” CEO Eric Nordstrom said during Tuesday’s earnings call, noting a specific slowdown in in-store sales rack business.
Earnings season is over, but there’s more earnings up its sleeve for traders, with reports from Nvidia (NVDA) and salesforce.com )CRM) Wednesday.
In commodity markets, crude oil futures continued to rise after Saudi Arabia on Tuesday proposed an OPEC+ alliance It may make it possible to make cuts to production. West Texas Intermediate crude futures rose about 1.2% to settle above $94 a barrel, while Brent crude futures rose by the same margin to reach $101 a barrel.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed
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