Wall St rebounds from steep sell-off with boost from chips By Reuters

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<span>© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 13, 2023. REUTERS/Brendan McDermid/File Photo</span><br />
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<p>By Stephen Culp</p>
<p>NEW YORK (Reuters) -U.S. stocks rose on Thursday, paring the previous day’s losses, as economic data fueled optimism that the Federal Reserve would ease monetary policy and revived investor risk appetite.</p>
<p>All three major U.S. stock indexes were higher, with surging chip stocks led by Micron Technology (NASDAQ:) after its better-than-expected quarterly forecast, putting the tech-heavy Nasdaq () out front.</p>
<p>Data on Thursday showed third-quarter U.S. economic growth was not as robust as originally stated, and cracks are appearing in the tight labor market, which the Fed considers an obstacle to cooling inflation.</p>
<p>U.S. stocks abruptly sank late Wednesday afternoon, snapping a multi-session rally, possibly accelerated by hedging activity associated with short-dated option trades.</p>
<p>“After a breather yesterday, the economic data further underscored investor confidence that the Fed is now on a rate cut track,” said Greg Bassuk, chief executive officer at AXS Investments in New York. “The investor narrative yesterday was about profit taking on the heels of a very long consistent holiday rally.”</p>
<p>“Investors would be prudent to buy on these dips,” Bassuk said, adding that he believes stocks “will end the year strongly.”</p>
<p>Financial markets are pricing in a 71.3% likelihood that the U.S. central bank with reduce the Fed funds target rate by 25 basis points as soon as March, according to CME’s FedWatch tool. </p>
<p>The market is awaiting the Commerce Department’s personal consumption expenditures (PCE) report due on Friday, which will cover income growth, consumer spending and inflation.</p>
<p>At 2:25 p.m., the rose 152.83 points, or 0.41%, to 37,234.83, the gained 24.66 points, or 0.52%, at 4,723.01 and the Nasdaq Composite added 109.88 points, or 0.74%, at 14,887.82.</p>
<p>Of the 11 major sectors of the S&amp;P 500, consumer discretionary stocks enjoyed the biggest percentage gains.</p>
<p>Micron Technology forecast quarterly revenue above market estimates, and its shares jumped 7.3% on signs of a memory chip recovery in 2024 after one of the most significant downturns in years.</p>
<p>The Philadelphia SE semiconductor index housing chip stocks advanced 2.0%.</p>
<p>U.S. electric vehicle makers Tesla (NASDAQ:), Lucid Group (NASDAQ:) and Rivian (NASDAQ:) Automotive rose between 2.1% and 2.4% after a report said the United States was considering tariff hikes on Chinese EV manufacturers.</p>
<p>Triumph Group (NYSE:) soared 32.1% after the aerospace supplier said it would sell its components aftermarket business to AAR (NYSE:) Corp for $725 million.</p>
<p>U.S.-listed shares of Blackberry (TSX:) tumbled 13.8% after its fourth-quarter revenue estimates landed below expectations.</p>
<p>Advancing issues outnumbered decliners on the NYSE by a 2.54-to-1 ratio; on Nasdaq, a 2.17-to-1 ratio favored advancers.</p>
<p>The S&amp;P 500 posted 13 new 52-week highs and one new low; the Nasdaq Composite recorded 57 new highs and 54 new lows. </p>
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<br /><a href="https://www.investing.com/news/stock-market-news/futures-rebound-after-broad-selloff-micron-shines-3261467">Source link </a></p><p>The post <a href="https://forextraderhub.com/wall-st-rebounds-from-steep-sell-off-with-boost-from-chips-by-reuters.html">Wall St rebounds from steep sell-off with boost from chips By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>