Stocks rise on hopes that the Fed will slow rate hikes

New York
CNN business

Snap’s dismal earnings report and results from Dow components American Express and Verizon weren’t enough to keep Wall Street bulls at bay on Friday. Stocks rose on hopes that the Federal Reserve will come to the rescue soon, slowing the pace of its rate hikes.

The Dow was up more than 550 points, or 1.9%, in midday trading, although the AmEx ( AXP ) and Verizon ( VZ ) were both down more than 5%.

Stocks opened lower but quickly rallied to the races a The Wall Street Journal the report indicated that while the Fed is likely to raise rates by another three-quarters in November, Fed members are debating whether to signal that a smaller hike could be on the cards in December.

Investors are starting to get nervous that the Fed’s series of big rate hikes could push the economy into recession. And apparently some at the Fed have doubts about the pace of rate hikes as well.

Reuters reported that San Francisco Fed President Mary Daly said in a speech on Friday that the central bank should not create an “unforced downturn” with rate hikes that are too big for the economy.

The Nasdaq and S&P 500 also rose, rising 1.4% and 1.7% respectively. That’s news that, while Snapchat’s parent company ( SNAP ) plunged more than 30% in its earnings, shares of other social media companies also fell. Facebook owner Meta fell more than 2% and Pinterest ( PINS ) sank 8%.

Twitter (TWTR) also fell 4% on reports that the Biden administration may take a closer look at Elon Musk’s other businesses for national security reasons before allowing Musk to buy Twitter (TWTR). There were also reports suggesting big layoffs at Twitter ( TWTR ) if the CEOs of Tesla ( TSLA ) and SpaceX close the deal.