Stocks Push Higher as Investors Rate Fedspeak

US stocks were struggling to stay afloat on Tuesday as Wall Street processed and pondered hawkish interest rate talk from Federal Reserve officials. Remarks by President Jerome Powell At an event hosted by the Swedish Central Bank.

S&P 500 Index (^ The Salafist Group for Preaching and Combat) and the Dow Jones Industrial Average (^ DJIEach rose a modest 0.1% in the afternoon after rising at the open and then turning negative briefly. Nasdaq Technology Heavy Composite (^ ix) increased by 0.2%.

Powell Repeat is important stable inflation in a speech Tuesday at a symposium on central bank independence in Stockholm, Sweden, adding that price adjustment could require the Fed to take necessary measures, even if they are often unpopular.

“The issue of monetary policy independence lies in the benefits of insulating monetary policy decisions from short-term political considerations,” he said.

Elsewhere in a busy week of Fedspeak is Federal Reserve Governor Michael Bowman He confirmed on Tuesday that there was still more work to be done On fighting inflation despite recent improvements in data, he said the Fed will continue to raise interest rates to reach its long-term price stability target of 2%.

“I am committed to taking further action to bring inflation back to our target,” Bowman said at the Florida Bankers Association Leadership Luncheon in Miami, Florida.

On specific market movements, Coinbase shares (Currency) by 4.9% after the cryptocurrency exchange said it would do so Cutting nearly 1,000 jobs as part of the restructuring plan. The company expects to incur approximately $149 million to $163 million in restructuring expenses. The move will mark Coinbase’s third round of layoffs since last year.

Shares of billionaire Richard Branson Virgin Orbit Holdings (VORB) 10% after One of the company’s missiles fails to arrive Its target orbit is on a highly anticipated space mission due to a technical malfunction.

Investors continued to watch shares of embattled retailer Bed Bath & Beyond (BBBY) as it reported earnings that came in below estimates, just one week after it was revealed that the company was considering bankruptcy due to its financial struggles. Meme stock is up nearly 20% on Tuesday after rising 24% on Monday.

“As we shared last week, we continue to work with advisors as we consider all strategic alternatives to achieve our goals in the near and long term,” CEO Sue Goff said in an update on Tuesday, adding that “multiple paths are being explored.”

stutter (BMBLShares rose 5% in early trade after KeyBanc upgraded its women’s dating app from Sector Weight to Overweight and said the “competitive environment appears to be stabilizing, and economic pressures are easing.”

Oak Street Health (Occupational Safety and HealthShares rose 28% after that Bloomberg News reported Monday CVS Health is exploring acquisition of the primary care centers operator.

NEW YORK, NY - JANUARY 9: Traders work on the floor of the New York Stock Exchange during afternoon trading on January 09, 2023 in New York City.  The stock market closed with mixed results after opening higher, with the Dow Jones and S&P 500 both closing with losses and the Nasdaq closing for a second day of gains.  (Photo by Michael M. Santiago/Getty Images)

Traders work on the floor of the New York Stock Exchange during afternoon trading on January 09, 2023 in New York City. (Photo by Michael M. Santiago/Getty Images)

Tuesday’s moves come after a mixed start to the week that saw the tech-heavy Nasdaq extend gains from Friday’s rally while the other two major averages failed to sustain momentum. The Nasdaq rose 0.6% on Monday, while the S&P 500 and Dow closed down 0.1% and 0.3%, respectively, after hawkish comments from two Federal Reserve officials.

Mary Daly, President of the Federal Reserve Bank of San Francisco, said during a live interview with the Wall Street Journal that she expects policymakers would raise interest rates to somewhere above 5%With the addition that the final rate will ultimately depend on the path of inflation.

Echoing that view, Atlanta Fed President Rafael Bostic said the US central bank should raise interest rates above 5% By early Q2 then they kept it there “for the long haul”.

“I’m not a pivotal guy,” Bostic said in remarks to the Atlanta Rotary Club on Monday. “I think we should pause and stop there and let the politics work.”

Thursday will bring the December Consumer Price Index (CPI) for investors – perhaps the most important economic release of the month and the last significant reading before the meeting of Federal Reserve officials from January 31st to February. 1 to provide the next interest rate increase.

Economists expect core CPI to rise 6.6% year-on-year in December, a A downward shift from the 7.1% increase seen in NovemberAccording to Bloomberg data. On a monthly basis, the CPI is likely to remain flat.

The report is likely to influence bets on whether the Fed will raise interest rates by 0.25% or 0.50% at the beginning of next month.

Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @tweet

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