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markets, click or type LIVE/ in a news window)
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Tesla up as sales in China nearly double in November -
data
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U.S. private payrolls growth slows in November - ADP
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S&P 500 +1.71%, Nasdaq +2.87%, Dow +0.93%
Nov 30 (Reuters) - Wall Street jumped on Wednesday after
Federal Reserve Chair Jerome Powell said the central bank might
scale back the pace of its interest rate hikes as soon as
December.
The S&P 500 rallied from an earlier loss and the Nasdaq
extended gains after the release of Powell's remarks prepared
for delivery at the Brookings Institution think tank in
Washington.
Powell also cautioned that the fight against inflation was
far from over and that key questions remain unanswered,
including how high rates will ultimately need to rise and for
how long.
"(The market) has waited with bated breath, looking for that
clarification in terms of duration and extent of Fed tightening.
And anything that gives hope to the idea the Fed is becoming
less hawkish is viewed as a positive for stocks, at least on a
short-term basis," said Chuck Carlson, Chief Executive Officer
at Horizon Investment Services in Hammond, Indiana.
Bets that the Fed will reduce the size of its rate hikes, as
well as recent data pointing to a mild cooling in inflation,
have the benchmark S&P 500 index on track for its second
straight month of gains.
The CME FedWatch Tool showed futures traders seeing a 75%
chance that the Fed will raise interest rates by 50 basis points
at its December meeting, up from a 65% chance before Powell's
comments were released. The FedWatch tool now shows a 25% chance
of a 75 basis point increase.
The S&P 500 remains down about 16% so far in 2022, while the
Nasdaq index has lost about 29%.
In afternoon trading, Apple was up 3.4% and Nvidia
jumped 5.5%.
Tesla Inc's shares surged 5.4%, after China
Merchants Bank International said Tesla's sales in China in
November were boosted by price cuts and incentives offered on
its Model 3 and Model Y.
Data on the day was mixed as the ADP National Employment
report showed private employment increased by 127,000 in
November, below expectations of 200,000 jobs, suggesting demand
for labor was cooling amid high interest rates.
"The ADP employment number not meeting expectations fits
into the narrative that the Fed will have room and start slowing
down its rate hikes, and that definitely benefits interest rate
sensitive assets," said Keith Buchanan, a portfolio manager at
Globalt in Atlanta.
The Labor Department's closely watched nonfarm payrolls data
is due on Friday. A report showed U.S. job openings falling to
10.334 million in October, against 10.687 million in the prior
month.
Another reading showed the U.S. economy rebounded more
strongly than initially thought in the third quarter.
The S&P 500 was up 1.71% at 4,025.14 points.
The Nasdaq gained 2.87% to 11,298.98 points, while the
Dow Jones Industrial Average was up 0.93% at 34,166.10 points.
Biogen Inc jumped 4.6% after its experimental
Alzheimer's drug slowed cognitive decline in a closely watched
trial.
Advancing issues outnumbered falling ones within the S&P 500
by a 1.5-to-one ratio.
The S&P 500 posted 6 new highs and 1 new lows; the Nasdaq
recorded 61 new highs and 144 new lows.
(Reporting by Shreyashi Sanyal, Devik Jain & Bansari Mayur
Kamdar in Bengaluru, and by Noel Randewich in Oakland, Calif.;
additional reporting by Stephen Culp in New York; Editing by
Shounak Dasgupta, Chizu Nomiyama and Diane Craft)