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US stocks rise as Fed comments fuel hopes rate hikes are done

Christopher Waller testifies before the Senate Banking, Housing and Urban Affairs Committee during a hearing on their nomination to be member-designate on the Federal Reserve Board of Governors on February 13, 2020 in Washington, DC.
Federal Reserve Governor Christopher Waller was supposed to give his remarks, but the Zoom call was infiltrated by a participant displaying pornographic photos.Sarah Silbiger/Getty Images
  • US stocks closed higher Tuesday following optimistic comments from Fed officials.

  • Fed Governor Christopher Waller expressed optimism that the central bank is on track to quell inflation.

  • Consumer confidence improved in November compared to the month prior.

US stocks traded higher Tuesday following upbeat comments from Federal Reserve officials that boosted hopes the central bank had reached the end of its rate hike cycle.

Markets digested comments from a slew of Fed speakers throughout the day, with indexes rising to close with a gain as the session neared the close.

In prepared remarks given in Washington DC, Fed Governor Christopher Waller said consumer prices look on track to fall to the central bank's target, which signals that interest rate cuts could be coming sooner than later.

"While I am encouraged by the early signs of moderating economic activity in the fourth quarter based on the data in hand, inflation is still too high, and it is too early to say whether the slowing we are seeing will be sustained," Waller said. "But I am increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent."

Meanwhile, US consumer confidence data out Tuesday showed that sentiment improved marginally in November compared to the prior month. Most respondents still see a recession on the horizon, but the Conference Board's Index nonetheless climbed to 102, above October's revised 99.1 reading.

Here's where US indexes stood as the market closed at 4:00.m. on Tuesday: 

Here's what else is going on: 

In commodities, bonds, and crypto: 

Read the original article on Business Insider

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