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Investing.com – U.S. stocks rose on Wednesday, after dovish comments from a top Federal Reserve official raised expectations that the U.S. central bank has ended its rate-hiking cycle.
As of 09:35 ET (14:35 GMT), the dollar was up 75 points, or 0.2%, up 28 points, or 0.6%, and up 120 points, or 0.9%.
Waller hints at future rate cuts
Sentiment received a boost following comments from the Governor of the Federal Reserve, who suggested on Tuesday that the US central bank’s monetary policy is “well positioned” to cool inflation.
Waller, typically known as a tough voice at the Fed, added that if inflation continues to slide toward the Fed’s 2% target for “several more months,” there’s a chance officials “could start to taper.” Interest rates.
Headline inflation in the US slowed more than expected to 3.2% in October, and the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index, will be released on Thursday.
It is expected to have risen just 0.1% month-on-month in November, down from 0.4% in September, while the core reading, which excludes food and fuel costs and is considered a better indicator of underlying inflation. 3.5% year over year, a drop from 3.7% the previous month and the lowest since mid-2021.
Sentiment was also boosted by news that GDP grew faster than initially thought in the third quarter, as gross domestic product rose at an annualized rate of 5.2% last quarter, a figure revised upwards from from the previously reported pace of 4.9%.
Berkshire Hathaway in the spotlight after Munger’s death
On the corporate front, shares of General Motors (NYSE:) soared 10% after the auto giant said it will buy back $10 billion in stock and increase its dividend by 33%.
Shares of Dollar Tree (NASDAQ rose 5% after the retailer cut its full-year sales forecast but also said it was reviewing its Family Dollar business.
Shares of CrowdStrike Holdings (NASDAQ are down just 5% as the cybersecurity company forecast fourth-quarter revenue above expectations, driven by resilient demand for its cybersecurity offerings.
In addition, Berkshire Hathaway (NYSE:) is in the spotlight after the announcement of the death of Charlie Munger, vice president of the vast conglomerate, shortly before his 100th birthday.
Munger was known as Berkshire Chairman Warren Buffett’s right-hand man and helped turn Berkshire from a failing textile maker into an investment empire valued at nearly $800 billion.
Oil gains from supply disruptions
Oil prices rose on Wednesday, boosted by more supply disruptions ahead of a crucial OPEC+ meeting to discuss future production levels.
At 09:35 ET, futures were trading 1.3% higher at $77.37 a barrel, while the contract was trading 1% higher at $82.29 a barrel.
A severe storm in the Black Sea region has disrupted up to 2 million barrels per day of oil exports from Kazakhstan and Russia, fueling concerns about a near-term supply shortage.
However, these concerns could be eased if the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, decides to announce deeper production cuts at their meeting on Thursday.
Oil also found support from a drop in US crude inventories, with industry body American Petroleum Institute estimating a drop of 817,000 barrels last week. Official data is scheduled to be released later in the session.
Furthermore, it rose 0.1% to $2,042.10 an ounce, while it traded 0.1% lower at 1.0986.
(Oliver Gray contributed to this article.)
