Wall Street Climbs as Rate Cut Predictions Rise

Wall Street enjoyed a fourth day of gains, driven by investor optimism over a potential Federal Reserve interest rate cut in December. Mega-cap stocks drove major indexes to two-week highs, despite a decline in Alphabet shares. Economic data underscored a complex economic landscape, reinforcing hopes for further monetary easing.

Wall Street's main indexes experienced their fourth consecutive day of growth on Wednesday, propelled by investor optimism regarding a probable Federal Reserve interest rate cut in December. Mega-cap stocks led the charge, lifting the S&P 500 and Nasdaq to two-week highs, while the Dow approached its peak for the same period.

The S&P 500 sectors were mostly positive, except for communication services, which was impacted by a downturn in Alphabet shares. Labor Department data indicated a drop in new U.S. jobless claims to 216,000, defying expectations of 225,000, and delayed reports showed core capital goods orders climbed 0.5% in September, surpassing the anticipated 0.3% increase.

Attention now shifts to the Fed's Beige Book publication, due at 2 p.m. ET, alongside speculation about Kevin Hassett's potential nomination as the next Fed Chair, amidst concerns of political meddling in monetary policy. Investors are also preparing for the holiday shopping season's impact on retail stocks, a critical period given current economic pressures.

(With inputs from agencies.)