US stock market: Wall Street indices rise as investors weigh Fed minutes, payroll revision

US stocks gained on Wednesday (August 21) amid narrow trading ranges as investors digested a significant downward revision in payroll data and the release of minutes from the Federal Reserve’s latest meeting, reinforcing expectations for a rate cut in September.

The Dow Jones Industrial Average climbed 55.52 points, or 0.14 per cent, to 40,890.49, while the S&P 500 advanced 23.73 points, or 0.42 per cent, to 5,620.85. The Nasdaq Composite added 102.05 points, or 0.57 per cent, closing at 17,918.99.

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Target’s shares soared 11.2 per cent after the retailer raised its 2024 profit forecast and reported its first quarterly increase in same-store sales in over a year.

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Discount retailer TJX Cos saw a 6.1 per cent rise in its stock after lifting its annual profit outlook.

Conversely, Macy’s shares plummeted 12.9 per cent following the department store chain’s downward revision of its annual net sales forecast.

U.S.-listed shares of Chinese e-commerce giant JD.com fell 4.2 per cent after Walmart, its largest shareholder, divested its stake in the company.

Ford Motor’s stock gained 1.6 per cent after the automaker announced adjustments to its electric vehicle strategy.

Fed meeting minutes

The Federal Reserve released the minutes from its July policy meeting, during which the Federal Open Market Committee decided to maintain the key interest rate.

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The July meeting took place before the release of a disappointing employment report and a series of economic indicators signalling cooling inflation and a softening yet resilient economy.

Despite these developments, the minutes reveal that Fed officials were already inclined towards a rate cut at the upcoming September meeting.

“The Fed minutes were dovish, and although they’re dated, they indicate that the debate is not whether the central bank will cut rates in September, but rather how aggressive the initial phase of this normalisation cycle should be,” stated a note from Oxford Economics.

The minutes also set the stage for the Jackson Hole Economic Symposium.

With inputs from agencies