Wall Street’s indexes edged higher on Wednesday, attempting to break out of the downward trajectory they’ve been on so far in August, with investors focusing on corporate results, always keeping an eye on the Federal Reserve’s plans to raise interest rates further in a attempt to “suppress” galloping inflation.
Specifically, on the board, the Dow Jones industrial index adds 208.44 points or 0.64% and moves to 32,604.61 points, the S&P 500 strengthens by 0.84% ​​to 4,125.75 points, while the technological Nasdaq shows the best image with gains of 1.48%, at 12,532.08 units.
It is noted that yesterday, Tuesday, the index of blue chips recorded losses of more than 400 points or 1.2%, the S&P 500 lost 0.7%, while the Nasdaq fell 0.2%.
Yesterday’s nervousness on the board was caused by the new tension in US-China relations caused by the visit of the speaker of the US House of Representatives, Nancy Pelosi, to Taiwan, which provoked the reaction of Beijing, which considers Taiwan a part of China.
The development has raised concerns that it could trigger a new round of friction between the US and China with perhaps adverse effects on trade, at a time when supply chains continue to struggle from the initial shock of the coronavirus pandemic and strict lockdowns in many countries in the previous months, and then Russia’s war in Ukraine.
Concerns that appear to have faded today as Pelosi’s visit to Taiwan ended without serious repercussions as Beijing reacted coolly.
However, despite the positive start for the indices, yesterday’s comments by Fed officials that the Federal Reserve should continue to raise interest rates to rein in price increases continue to fuel investor caution, keeping the indices from moving decidedly higher.
Investors appear to be awaiting the release of US labor market data on Friday to see how inflation has affected employment and the economy.
On the business “front”, a jump of more than 10% marks the title of PayPal, which late last night announced second-quarter results better than expectations, with the company however giving a mixed forecast for the full year.
Strong gains are also being recorded by the stock of Robinhood, which yesterday announced plans to reduce its staff by 23% citing the weak economic environment and limited trading activity.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
