Wall rally with macro push and Powell assurances of ‘strong economy’

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Key Wall Street indexes rallied on Tuesday, with the industrial Dow Jones gaining more than 430 points and the tech Nasdaq climbing almost 2.8% after the assurances of the President of the Federal Reserve that the American economy is withstanding the growth of interest rates and the encouraging data released today on retail and industrial production.

In Today’s speech by Federal Reserve Chairman Jerome Powell said no one should question the US central bank’s determination to reduce inflation.

At the same time, the central banker assured investors that “the US economy is strong”, adding that “we believe that it is in a good position to withstand a less accommodative monetary policy”.

The Fed has already raised interest rates by 75 basis points in the last two sessions, while it has announced two more increases of 50 basis points. each time for the next two meetings in June and July.

The Fed governor confirmed these forecasts today, noting that “if the performance of the economy is what we expect, then this is something that will be on the table.”

Indicators – Statistics

On the board, the Dow Jones gained 431.17 points or 1.34% and closed at 32,654.59 points, while the broader S&P 500 added 80.84 points or 2.02% to 4,088.85 points. The technology Nasdaq strengthened by 321.73 points or 2.76% to 11,984.52 points.

Of the 30 stocks that make up the Dow Jones industrial average, 24 closed with a positive sign and six with a negative. The biggest gainers were Boeing with gains of $ 8.00 or 6.45% at $ 132.05, followed by American Express with gains of 3.46% to $ 161.85 and JPMorgan Chase at 122, $ 18 with an increase of 3.31%.

On the other hand, the three stocks with the biggest losses were Walmart (-11.38%) after the announcement of gains for the first quarter, which failed to confirm analysts’ estimates and McDonald’s (-0.99%) and Procter & Gamble (-0.28%).

The financial data released today confirmed the picture described by the Fed governor for the economy.

In particular, data released by the US Department of Commerce showed a 0.9% increase in retail sales in April, after the upward revised rise in March by 1.4% from 0.7% initially. Excluding vehicles and fuel sales, retail sales rose 1% last month. Analysts’ average estimates in a Bloomberg poll showed an increase of 1% in total sales and 0.7% excluding vehicles and fuel.

The data on the course of industrial production were also positive, strengthening at a strong pace for the third consecutive month in April.

In particular, manufacturing output rose 0.8% after a similar rise in March, according to Fed data. Total industrial production climbed 1.1% in April. Analysts’ average estimates in a Bloomberg poll spoke of a 0.4% increase in manufacturing output and 0.5% of total industrial output.

In business developments, Citigroup’s title jumped 7.5% in the wake of reports that the Berkshire Hathaway of billionaire investor Warren Buffett acquired a share of nearly $ 3 billion in the bank in the first quarter.

The Twitter share also recorded strong gains of 2.5% despite the last post of Elon Musk that the $ 44 billion agreement “can not go ahead” without more data on spam bots. briefing the US Securities and Exchange Commission (SEC), assured that it remains committed to completing the deal at $ 54.20 per share.


Source: Capital

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