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Investing.com — U.S. stocks were pushed higher Wednesday following a slump in Treasury yields after the Federal Reserve kept rates steady despite acknowledging a step up in the pace of economic growth.
At 3:41 pm ET (19:41 GMT), the was up 228 points or 0.7%, while the was up 1.1% and the was up 1.5%.
Fed keeps rates steady; Treasury yields slump
The Federal Reserve kept its steady on Wednesday for the second-straight meeting despite the threat of ongoing “strong” economic growth.
“Recent indicators suggest that economic activity expanded at a strong pace in the third quarter,” the Fed said in a statement.
The yield on the , which is more sensitive to Fed policy, fell 12.5 basis points to 4.93%, which is the lowest level since September.
ADP payrolls lower than expected ahead of Friday’s key report
The October came in at a lower than the expected 113,000 though still stronger than the September reading. In a sign that labor demand remains healthy, however, the September topped economists estimates.
These come ahead of Friday’s which will give the Fed and investors a new detailed reading on the state of the still-tight labor market.
Investors will also keep an eye on the country’s future refinancing plans, with yields close to historic highs, even after the Treasury forecasted a lower fourth-quarter borrowing need than previously flagged.
Advanced Micro Devices rallies to lift chip stocks
Advanced Micro Devices Inc (NASDAQ:) rallied more than 9% as the chipmaker’s weaker-than-expected current-quarter guidance was cast aside after the company touted strong demand for its artificial intelligence chips. AMD also reported better-than-expected Q3 .
The company said it expects to sell $2 billion of graphics processing units used in the development of AI programs that some on Wall Street say should boost its data center business, removing the drag from other businesses including gaming.
“[T]his should once and for all remove the overhangs from these businesses and shift the focus to AI where it has a unique, rapidly growing, and large (relative to AMD’s size) AI opportunity that should start to really hit in 2024/2025,” UBS said in a note, though cut its price target on the stock to $135 from $145.
Earnings season continues in force
There are a number of companies due to report earnings, including fintech PayPal (NASDAQ:) and home share company Airbnb (NASDAQ:). Norwegian Cruise Lines beat profit expectations but guided to fourth quarter results below expectations citing operational impacts from external events including the conflict in the Middle East. Shares fell 3.1%.
Match Group (NASDAQ:) stock slumped 16% after the Tinder dating app parent offered up disappointing revenue guidance for the fourth quarter.
Energy stocks inch higher as oil gains
Energy stocks were marginally higher intraday, underpinned by rising oil prices following official data from the showing weekly stockpiles rose less than expected last year.
Marathon Petroleum Corp (NYSE:), Phillips 66 (NYSE:), and Coterra Energy Inc (NYSE:) were among the biggest gainers in the energy sector.
—Liz Moyer contributed to this report
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