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Stocks Wax As Fed Hikes Wane
1The Nasdaq jumped 1.7%, its best gain since mid-Oct., after Fed minutes suggested interest rate hikes are near an end. The S&P 500 rose 1.6%, the small-cap 600 1.5%. Energy, gold, housing and chip stocks did well. Also, the 10-year Treasury yield fell to 4.37%, but the spread vs. the 2-year rate rose to 3 basis points from an "inverted" -1 on Fri. More on this page, B2.
Minutes Signal Fed Nearly Done
2The policy-setting FOMC thought the number of additional tightening "probably would not be large," according to minutes from the Dec. 13 meeting. The Fed's inflation fears eased somewhat. Central bankers, who expect slower growth in '06, also said rates are now in a neutral range. The release suggested the Fed will stop raising rates soon, maybe in Jan. More on this page
Crude Prices Surge Above $63
3Feb. crude rose $2.10 to $63.14 a barrel, the highest since Oct. 18. The Russia-Ukraine natural gas feud raised talk that Europe will shift to heating oil. Meantime, natural gas fell 59.9 cents to $10.626 per mil Btu. Heating oil futures rose 2.66 cents to $1.7964 a gallon, well off intraday highs. Gasoline gained 2.31 cents to $1.7505. Traders cited speculative buying. More on this page
Factory Growth Cooled In Dec.