Wall Street hits record closing highs on rate-cut optimism – Times of India

by The Technical Blogs

Wall Street‘s major stock indexes soared to record closing highs for the second consecutive day on Thursday, following the Federal Reserve‘s hints at potential rate cuts this year. The rally was further boosted by a surge in chip stocks, led by Micron Technology’s optimistic forecast.
The Dow Jones Industrial Average closed less than 1% away from the 40,000 mark for the first time, after both it and the S&P 500, along with the Nasdaq Composite, achieved new intra-day highs earlier in the day. The positive momentum in the stock market was influenced by the Federal Reserve’s latest statements, which reassured investors of possible easing in borrowing costs.
Micron Technology emerged as a standout performer, with its shares jumping over 14% after reporting an unexpected quarterly profit and projecting third-quarter revenue that surpassed analyst estimates. Similarly, Broadcom’s shares climbed by 5.6% following an upgrade by TD Cowen, and Nvidia contributed significantly to the market’s gains.
Thursday’s optimism was also fueled by encouraging economic data, including a decrease in new unemployment claims and a notable increase in sales of previously owned homes, signaling robust economic health.
However, despite the overall market upturn, some companies faced challenges. Apple’s shares fell by 4.1% following a lawsuit from the US Department of Justice, while Accenture’s stock dropped 9% after revising its revenue forecast downwards due to economic uncertainties.
Reddit marked its trading debut on the New York Stock Exchange, ending the day significantly above its initial public offer price, which added to the market’s positive sentiment.
The stock market’s rise reflects broader confidence in the economic outlook and the anticipation of a more accommodative monetary policy. Yet, concerns remain regarding inflation and the Federal Reserve’s optimistic stance on rate cuts, with some analysts cautioning about the potential reintroduction of inflation risks.
(With inputs from agencies)

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