Shares of banks and other financial institutions were higher as investors digested the Federal Reserve's meeting minutes, released Wednesday, which showed that policy makers were in agreement for half-percentage point increases in June and July, in line with previous communication.
The minutes suggested the central bank has penciled in two more 50-basis-point hikes, but that plan may be less aggressive than some investors had feared.
"To some extent, markets have been reassured that the Fed isn't going to tighten more aggressively than what is expected," said Luc Filip, head of investments at SYZ Private Banking.
In corporate news, Big Four accounting firm Ernst & Young is considering a world-wide split of its audit and advisory businesses, amid regulatory scrutiny of potential conflicts of interest in the profession, The Wall Street Journal reported, citing people familiar with the matter. A split would be the biggest structural change at a Big Four firm since Arthur Andersen fell apart some 20 years ago. The potential move would create two giant professional firms. EY last year had global revenue of $40 billion, of which $13.6 billion came from audit work.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
05-26-22 1740ET
