Investors are looking ahead to non-farm payroll on Friday after a narrow measure of inflation moderated in October and retail gasoline prices wiped off the price increase in the last nine months.
Dollar General earnings fell on higher costs and unanticipated surge in temporary storage costs. PVH Corp advanced on sales outlook. Snowflake fourth quarter sales guidance disappointed. Five Below earnings lagged sales growth.
Indexes pared back some of the large gains in the previous session. The Federal Reserve's preferred measure of inflation, which understates price increases, rose at the slowest pace this year in October
Investors reacted positively after Fed Chairman Powell said future rate hikes may be moderated but the terminal rate is likely to cross 4.6% and stay above longer than anticipated in September.
Stocks turned higher after Chairman Powell suggested a slower rate increase may be appropriate beginning as early as December. However, Powell cautioned rates are likely to go higher and stay higher for a longer period of time than previously anticipated.
Investors shift focus to upcoming economic data released this week and comments from the Fed chair Powell as earnings season winds down. European markets eased as inflation stays elevated. India indexes soar on strong domestic demand revival.
China unrests are likely to disrupt Apple Inc's supply chains. Taboola.com surged after Yahoo acquired a minority stake. Energy complex stocks traded volatile after crude oil plunged as much as 4% before recovering.
China disruptions are likely to persist as authorities stick to zero-Covid policy, despite the rising anger and growing defiance of the government measures.
Benchmark indexes closed higher in a holiday shortened week and investors looked ahead to the release of inflation data next week. European markets brace for another large-sized rate hike next week.
After the release of the FOMC statement, markets lowered the future rate-hike size expectations and ignored the policymakers' review that rates are not sufficiently restrictive enough for economic activities.
