Markets Jump at Midday Amid Optimism the Fed Could Be Done Raising Interest Rates in 2023


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Key Takeaways

  • U.S. equities posted strong gains at midday on Thursday, Nov. 2, 2023 amid enthusiasm that the Federal Reserve may not raise interest rates to fight inflation any more this year.
  • Starbucks posted record sales and said it would undertake a new strategy, and shares jumped.
  • Qualcomm shares rose after reporting results that beat estimates on rising demand for mobile phones.

U.S. equities took off at midday on enthusiasm that the Federal Reserve may be done raising interest rates this year to curb rising prices. Bond yields plunged after policymakers held borrowing costs steady at yesterday’s meeting, and data suggested inflation is easing. The Dow, S&P 500, and Nasdaq were all up more than 1%.

Starbucks (SBUX) shares soared, leading gains on the S&P 500 after the biggest coffee chain posted a record profit as it sold more expensive drinks, and indicated it would undertake a “reinvention” strategy.

Shares of Teleflex (TFX) also jumped after the medical device maker said demand for its equipment rose because of an increase in surgeries that patients had put off during the COVID-19 pandemic. Tyler Technologies (TYL) shares advanced as the provider of software for the government beat earnings estimates on higher subscription revenues. 

Qualcomm shares rose after the chipmaker reported profit and sales that beat estimates, and posted better-than-expected guidance on rising demand for mobile phones.

Moderna (MRNA) shares sank after the COVID-19 vaccine maker reported a steep loss as it moved to cut back on manufacturing because of falling demand for the shots. Dentsply Sirona (XRAY) shares plunged as the dental equipment manufacturer cut its full-year guidance, citing “a challenging external environment.”

Shares of Aptiv PLC (APTV) dropped as the auto parts supplier warned that its full-year sales would be negatively impacted by the six-week-long auto workers’ strike against the Big Three carmakers.

Oil and gold futures gained. The U.S. dollar lost ground to the euro, pound, and yen. Prices for major cryptocurrencies were higher.

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