Fed Officials Hint at Pause on Rate Hikes, S&P 500 Jumps
Fed officials continue to tout wait and see approach
The S&P 500 jumped on Tuesday as investors digested remarks from Federal Reserve officials suggesting a pause on rate hikes. Atlanta Federal Reserve President Raphel Bostic added to expectations that rates will remain steady next month, stating that many of the rate hikes delivered since March 2022 are yet to impact the economy. Bostic believes that it is unnecessary to increase rates further to combat high inflation. The remarks from Bostic echo those of Fed Vice Chair Philip Jefferson and Dallas Fed President Lorie Logan, who highlighted the negative effects of surging Treasury yields on growth and inflation.
Microsoft gains on Morgan Stanley backing, Palantir rises on contract win
Microsoft Corporation (NASDAQ:) received support from Morgan Stanley as the investment bank reiterated its confidence in the tech giant. Despite this, Microsoft’s stock failed to maintain its gains. Palantir Technologies Inc (NYSE:) saw a 1% increase after securing a new contract worth approximately $250 million from the U.S. Army.
Boeing rises despite slip in Q3 deliveries
Boeing Co (NYSE:) experienced a more than 3% increase in stock price, despite reporting a decline in third-quarter deliveries of new airline jets. The company delivered 105 airplanes in the third quarter, down from 112 in the same period last year. In a separate development, Boeing confirmed the delivery of 1,000 smart bombs to Israel to support its efforts against Hamas.
PepsiCo shines on earnings stage
PepsiCo (NASDAQ:) reported quarterly results that surpassed expectations, leading to a more than 1% increase in stock price. The snacks and beverage company also raised its annual earnings guidance to 13%, up from the previous target of 12%. Analysts believe this marks a significant achievement for PepsiCo in terms of long-term growth.
Truist leads jumps on deal news; Banks higher ahead of earnings later this week
Truist Financial Corp (NYSE:) experienced a more than 6% increase in stock price, leading the financials sector higher. The company is reportedly in talks to sell its brokerage business to private equity company Stone Point for approximately $10 billion. This surge in bank stocks coincides with the upcoming quarterly earnings season, with JPMorgan and other major banks set to release their reports on Friday. The unwinding of the inverted yield curve has also supported bank sentiment, as it boosts lending business for banks.
Overall, the S&P 500 jumped as investors reacted to Fed officials hinting at a pause on rate hikes. The market saw positive movements in various sectors, including tech, aerospace, consumer goods, and finance.
