By Gokhan Ergocun
ISTANBUL (AA) - The New York Stock Exchange closed higher on the last trading day of the week as expectations for a rate cut by the Fed at its December meeting strengthened.
The Dow rose 1.08%, or 493.15 points, to close at 46,245.41.
The Nasdaq increased 0.88%, or 195.03 points, to 22,273.08, while the S&P 500 added 0.98%, or 64.23 points, to 6,602.99.
The Volatility Index (VIX), also known as the "fear index," fell 10.79% to 23.57.
The stock indexes, which had declined throughout the week due to uncertainty surrounding interest rate cuts and concerns about high asset valuations, turned positive on the last trading day of the week.
New York Fed President John Williams' statement that he sees room for further rate cuts in the short term due to the weakening labor market supported the upward movement in the markets.
On the macroeconomic data front, the US manufacturing Purchasing Managers' Index (PMI) indicated that expansion in the manufacturing sector is slowing; the manufacturing PMI fell to a four-month low of 51.9 in November.
The consumer confidence index, measured by the University of Michigan, remained near historically low levels despite being revised upwards in November; the consumer confidence index decreased by 2.6 points to 51 in November month-on-month.
Consumers' short-term inflation expectations fell from 4.6% to 4.5% in November, while long-term inflation expectations fell from 3.9% to 3.4%.
Meanwhile, the US Bureau of Labor Statistics (BLS) announced that it would not release the Consumer Price Index (CPI) data for October due to the inability to collect numbers during the federal government shutdown.