US Stocks Surge on Renewed Rate Cut Hopes after FOMC Minutes

Wall Street closed modestly higher on Wednesday, with the S&P 500 and Nasdaq gaining over 0.4% and 0.5% respectively. The Dow Jones Industrial Average saw smaller gains of 0.14%. Advancing stocks outnumbered declining ones on both the NYSE and Nasdaq. The S&P 500 and Nasdaq set new 52-week highs, while trading volume remained below average.

Investor optimism grew after the release of the Federal Reserve’s July meeting minutes, which signaled a strong leaning towards a rate cut in September. This sentiment was further bolstered by a significant downward revision in payroll data, suggesting a softer labor market than previously thought. The upcoming Jackson Hole Economic Symposium, where Fed Chair Jerome Powell speaks, is also in focus.

Winners and Losers:

Target (TGT.N) surged 11.2% after raising its full-year profit forecast and reporting strong sales growth. TJX Companies (TJX.N) rose 6.1% after lifting its annual profit forecast. Macy’s (M.N) fell 12.9% after lowering its annual net sales forecast. JD.com (JD.N) dropped 4.2% after Walmart (WMT.N) sold its stake in the company. Ford Motor (F.N) climbed 1.6% following an announcement regarding its electric vehicle plans.