by Chuck Mikolajczak
NEW YORK (Reuters) – The New York Stock Exchange ended higher on Wednesday, as investors’ eyes focused on Friday’s release of figures for the Personal Consumption Expenditures (PCE) price index, one of the favorite inflation indicators of the American Federal Reserve (Fed).
The Dow Jones index gained 1.22%, or 477.75 points, to 39,760.08 points.
The broader S&P-500 gained 44.91 points, or 0.86%, to 5,248.49 points.
The Nasdaq Composite advanced 83.82 points (0.51%) to 16,399.521 points.
Although recent inflation data was higher than expected, the market is still pricing in a 25 basis point interest rate cut from the Fed in June.
The Fed confirmed last week that it plans to make three rate cuts this year, a position supported by its officials this week.
The release of the PCE price index is expected on Friday, when most markets will be closed for the Easter weekend.
“The Fed can and should take its time, particularly because the economy allows it some flexibility and cutting rates prematurely would only set us up for a worse outcome,” said Craig Fehr, chief investment officer at Edward Jones, in St. Louis.
“The real challenge for Fed officials has been to calm and steer market expectations when they went too far in one direction or the other.”
Traders currently expect with a 70.4% probability that the Fed will begin rate cuts in June, according to CME Group’s Fedwatch barometer.
In values, Merck & Co rose after its Winrevair treatment for adults with pulmonary arterial hypertension was approved in the United States.
Trump Media & Technology Group surged for its second trading session.
Nvidia fell for the second session in a row.
GameStop was also down after reporting lower quarterly revenue and announcing job cuts to reduce costs.
(French version Camille Raynaud)
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