Markets rise after the worst day of 2023, ahead of FED minutes

The stock market managed to rise slightly on Wednesday as it struggled to recover from its worst day of the year. It is also expected that traders will be paying attention to the minutes of the Federal Reserve's latest meeting, which could provide insight into the central bank's future hike plans.

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The Dow Jones Industrial Average increased by 95 points, or 0.3%, during the session. There was a 0.3% rise in the S&P 500 and a 0.3% rise in the Nasdaq Composite. For most of the session, the major averages fluctuated between gains and losses on an oscillating basis.

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Palo Alto Networks shares soared 11.9% after the cybersecurity company raised its earnings forecast. Shares of cryptocurrency exchange Coinbase fell 5% despite topping revenue expectations.

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Traders will examine the Fed minutes for clues about the central bank's future interest rate hike path and its recent 25 basis point increase at 2 p.m. ET.

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Stocks plunged to their worst day since 2023 Tuesday as investors grew worried that the Federal Reserve will continue to hike rates. As a result of a slew of disappointing earnings reports, including a disappointing report from Home Depot, there are also concerns over the health of the consumer market.

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There is a strong consensus in the market that the market pullback over the past couple of days is a "direct response" to the increase in interest rates, according to Bahnsen Group's Chief Investment Officer David Bahnsen.

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He added, “Even though the recent market pullback may have seemed sudden and significant, it was actually tame and perfectly expected, given the sudden and significant market rally seen throughout January and in part of February.”

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The rise in bond yields has also been keeping the market on edge recently, with the 10-year Treasury note yield reaching its highest level since November this week, which has contributed to the market's jitters.

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James Bullard, the President of the St. Louis Federal Reserve, warned on Wednesday that the central bank's fight against inflation is far from over.

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“There has been a growing trend toward saying, "Let us slow down and feel our way to where we need to be.' However, we are still not at the point where the committee has decided to put in the so-called terminal rate," he stated during an interview. Once you've reached that level, you'll be able to feel your way around and decide what you need to do next. Once you are there, you will be able to tell when the next move could be up or down," Bullard said.

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