US stocks rise as investors look to Fed comments for clues about a December rate hike

Traders work on the floor of the New York Stock Exchange (NYSE)

US stocks edged higher on Tuesday as investors turn their attention to the December Fed meeting.
Investors are looking to recent comments from Fed presidents Loretta Mester and Mary Daly for clues about the next rate hike.
Market consensus currently expects a rate hike of just 50 basis points at the December meeting.

US stocks edged higher on Tuesday as investors parse through comments from Federal Reserve officials as to what the next interest rate hike will look like. 

Fed presidents Loretta Mester and Mary Daly offered opposing clues in two separate Monday interviews, with Mester saying she supports a smaller rate hike at the December FOMC meeting compared to their recent 75 basis point hikes. Daly said it’s “premature” to rule out a 75 basis point rate hike in December.

Both Fed presidents they want to see more progress on reducing inflation before ending their interest rate hikes altogether. Current market consensus expects a rate hike of just 50 basis points at the December Fed meeting, according to the CME FedWatch Tool.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

S&P 500: 3,968.62, up 0.47%

Dow Jones Industrial Average: 33,916.13, up 0.64% (215.85 points)

Nasdaq Composite: 11,051.21, up 0.24% 

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Source:: Businessinsider

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