Stocks end higher a day after Fed hikes rates
Stocks rose Thursday, with the S&P 500 recovering from a four-session losing streak, a day after the Federal Reserve increased its benchmark interest rate by a quarter percentage point. The dollar rose to a two-week high, and Treasury yields fell.
Here's the scoreboard:Dow Jones industrial average: 26,442.74 +57.46 (+0.22%)
S&P 500: 2,914.30 +8.33 (+0.29%)
Nasdaq Composite: 8,041.97+51.60 (+0.65%)
- Ahead of a self-imposed NAFTA deadline this weekend, the Trump administration looks set to leave Canada behind. The US is expected to publish text of a bilateral trade agreement with Mexico on Friday, which Canada could presumably join if it makes concessions. Key sticking points include access to Canada's protected dairy market and rules on resolving trade disputes.
- Italy's budget rattles European markets. Concerns about the ambitious spending plans of the Five Star and the League, a new populist government coalition, led to a delay in the release of Italy's 2019 budget. The budget-deficit target was settled at 2.4%, Reuters reports, as officials push for programs like basic income.
- Breaking three months of gains, the Commerce Department said a closely-watched measure of US business demand unexpectedly fell last month. Core durable goods orders excluding aircrafts, or long-lasting items made in US factories, fell 0.5% month-over-month. Other data out Thursday showed a slump in exports led the US trade deficit to a six-month high in August.
- Less than two months ahead of midterms, House Republicans are set to pass a $631 billion tax-cut extension this week. But the bill is unlikely to pass the Senate, with some concerned efforts to bolster Trump's $1.5 trillion tax overhaul could backfire as the federal deficit races to unprecedented heights.
And a look at the upcoming economic calendar:
- Canada reports monthly GDP.
- The US releases consumer spending numbers and its latest consumer-price index reading.