[New York Stocks] Rise for Second Straight Session...Give Back Some Gains on Rate-Hike Talk

The New York stock market succeeded in rebounding for a second straight day. However, it gave back part of its gains after news emerged that a rate-hike scenario had been discussed at the January Federal Open Market Committee (FOMC) meeting.

Reuters Yonhap News

On the 18th (U.S. Eastern time), on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 49,662.66, up 129.47 points (0.26%) from the previous session. The large-cap-focused S&P 500 Index rose 0.567% to 6,881.31, while the tech-heavy Nasdaq Composite Index finished at 22,753.64, up 0.78%.

The market reacted sensitively to the minutes of the January FOMC meeting. Some members noted that if inflation continues to run above the target, upward adjustments to interest rates could be appropriate. Because of this, the market surrendered part of its earlier gains. However, this does not mean that a few members are calling for immediate rate hikes. Rather, it indicates they may argue that, depending on conditions, the possibility of rate increases should also be reflected in the FOMC statement.

Charlie Ripley of Allianz Investment Management said, "The minutes confirmed our existing view that rate cuts in the near term are effectively off the table."

By sector, all groups rose except for defensive sectors such as utilities, real estate, and consumer staples. Energy jumped 2%, and consumer discretionary climbed 1%.

By stock, Nvidia gained around 2% after news that it had signed a multi-billion-dollar supply deal with Meta. Amazon also rose 2% on reports that billionaire investor Bill Ackman had increased his stake. Micron shares climbed 5.3% as well.