NEW YORK, Dec. 4 (Xinhua) -- U.S. stocks advanced on Wednesday, as investors absorbed remarks from Federal Reserve Chair Jerome Powell about a cautious approach to monetary policy.

The Dow Jones Industrial Average rose 308.51 points, or 0.69 percent, to 45,014.04. The S&P 500 added 36.61 points, or 0.61 percent, to 6,086.49. The Nasdaq Composite Index increased 254.21 points, or 1.30 percent, to 19,735.12.

All of the three indexes closed at new record highs on Wednesday thanks to continuous upbeat sentiment among investors.

Six of the 11 primary S&P 500 sectors ended in red, with energy and materials leading the laggards by losing 2.47 percent and 0.89 percent, respectively. Meanwhile, technology and consumer discretionary led the gainers by going up 1.77 percent and 1.20 percent, respectively.

Powell stated on Wednesday that the Fed could afford to be "cautious" while assessing the need for further interest rate cuts, keeping market participants attuned to the central bank's next move. "The labor market is better, and the downside risks appear to be less in the labor market. Growth is definitely stronger than we thought, and inflation is coming at a little higher. So the good news is that we can afford to be a little more cautious as we try to find neutral," Powell said.

Two other Federal Reserve officials also echoed a measured tone. St. Louis Fed President Alberto Musalem emphasized flexibility, stating he was keeping "all options open" ahead of the Fed's meeting in two weeks, noting that decisions would depend on incoming data. Similarly, Richmond Fed President Thomas Barkin highlighted positive trends in inflation and employment but refrained from making early judgments, stressing the importance of waiting for additional data.

Also on Wednesday, ADP reported that U.S. businesses created 146,000 jobs in November, reflecting labor market stability but falling short of analysts' expectations. The Institute for Supply Management (ISM) revealed a weaker-than-anticipated performance in the U.S. services sector, as the Services PMI registered a print of 52.1 percent, suggesting softer business activity.

Markets currently estimate a 77 percent probability that the Fed will lower rates at its upcoming meeting, compared with around 67 percent a week ago, according to CME Group's FedWatch Tool.

In corporate news, UnitedHealth Group suspended its investor day on Wednesday after the tragic death of Brian Thompson, CEO of its insurance unit UnitedHealthcare. Thompson was fatally shot in Manhattan on Wednesday morning. Enditem

Related

Go to Forum >>0 Comment(s)