Stocks Rally On Fed Minutes ‘Pause’ Hint; Q1 GDP Revised Lower

Updated at 4:08 pm EST

US stocks closed firmly higher Thursday, extending the Dow’s winning streak to a fifth consecutive session, as investors weighed the impact of the Federal Reserve’s inflation fight against a mixed of challenges facing the global economy.

Stocks were also unphased after the Commerce Department revised its estimate of first quarter GDP growth to show a 1.5% contraction, while continuing unemployment claims edged modestly higher, to 1.346 million for the week ending on May 14.

Minutes from the Fed’s May 4 policy meeting, published yesterday afternoon, showed a broad consensus for 50 basis point rate hikes at meetings in June and July. However, participants also noted the possible need for faster and deeper moves – a ‘restrictive policy stance’ – that didn’t completely eliminate market bets on a 75 basis point move at some point in the tightening cycle.


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