LAST UPDATE 22.00
Wall Street’s main indexes are picking up further, with buyers on the counterattack after the Federal Reserve’s second consecutive 0.75% interest rate hike and President Powell’s remarks.
The U.S. central bank today announced as expected another 75 basis point increase in interest rates, continuing the aggressive policy tightening that began last March as part of its effort to rein in inflation.
The new increase today by 75 m.v. leading the total increase since March to 225 bp.
The market was given more impetus by Fed Chairman Jerome Powell, who at the press conference did not rule out yet another aggressive rate hike at the next meeting, but said that slowing the pace of hikes seems more appropriate as the Bank moves forward with further tightening.
Indicators – Statistics
On the board, the Dow Jones now adds 365 points, or 1.15%, to 32,127 points, while the S&P 500 gains 88 points, or 2.2%, and has passed the psychological level of 4,000 points.
However, the performance of the day is presented by the technologically weighted Nasdaq, which with a jump of 420 points or 3.6% climbs to 11,982 points.
Of the 30 stocks that make up the Dow Jones industrial index, 16 move with a positive sign and 14 with a negative sign. The biggest increase was recorded by Microsoft with gains of $11.92 or 4.73% to $263.82, followed by Boeing at $160.84 with an increase of 3.16% and Salesforce with gains of 2.84 % to $175.31
The biggest losers are Home Depot (-1.62%), 3M (-1.29%) and Coca-Cola (-1.14%).
Meanwhile, investors continue to evaluate corporate announcements about their second-quarter financial results. More than 150 S&P 500 companies have reported results so far, with about 70% beating analysts’ estimates, according to FactSet data.
Tech giants Alphabet and Microsoft missed analysts’ earnings estimates in after-hours earnings calls yesterday, with both companies posting double-digit revenue growth.
Investment attention was gathered by the results of other big names in the American economy such as Boeing, Visa, Kraft Heinz, Chipotle Mexican Grill, Texas Instruments.
Later in the day, data released today showed that durable goods orders rose 1.9% in June mainly due to gains in the auto and aircraft categories.
At the same time, the US goods trade deficit shrank 5.6% in June to $98.2 billion, the US Commerce Department said.
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.
