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Wall Street rises on growth stocks

U.S. stock indexes shook off early weakness to trade higher as growth stocks rallied, with investors awaiting minutes from the Federal Reserve’s May meeting for clues on the path of its policy tightening.

The central bank had at its May 3-4 meeting increased interest rates by half a percentage point, the biggest jump in 22 years. Minutes of that session, due to be released at 2 p.m., could start shaping the debate over what happens when they meet in June and July to fight surging prices.

Director of global markets research at Boston Partners, Mike Mullaney continues on the path they’ve suggested you’ll see a greater probability of a recession in 2023, fed Chair Jerome Powell has promised to keep pushing on rate hikes until there is clear and convincing evidence that inflation is dropping. That has prompted money markets to price in 50 basis point hikes in June and July.

Reuter reports that aggressive outlook for policy tightening along with uncertainty stemming from Russia-Ukraine crisis and more recently dismal forecasts from retailers have pushed down the S&P 500 and Nasdaq  by 16.8% and 27.4% this year, respectively.

Editing by Marian Benjamin, Omotola Oguneye