Wall Street closes, fairly quiet ahead of Fed news Friday – zimo news


The New York Stock Exchange ended higher on Thursday, boosted by better-than-expected indicators and a rather quiet speech from the head of the U.S. central bank (Fed) scheduled for Friday.

The Dow gained 0.98% to 33,291.78, the Nasdaq gained 1.67% to 12,639.26 and the broader S&P 500 gained 1.41% to 4,199.12.

Wall Street was able to hold on to the bottom after edging up the previous day, thanks to a string of macroeconomic data that was well-received by investors.

As a result, U.S. gross domestic product (GDP) contracted slightly less than expected in the second quarter (-0.6% vs. -0.9% originally reported), and weekly jobless claims fell slightly, much less than economics home forecast.

Separately, an index of activity from the Fed’s Kansas City office showed that despite the deceleration, the region’s economy expanded in August, when a contraction was expected.

Nick Reece of Merk Investments noted that “data has been generally very positive” in recent days.

The bond market rested on Thursday after a frantic sprint in which the yield on the 10-year U.S. government bond rose nearly half a point in 10 days. The same reference rate fell slightly to 3.02% from 3.10% the previous day.

After the initial tensions, which largely explained the stock market’s poor start to the week, investors sobered up and didn’t approach Jerome Powell’s speech Friday with much concern.

“He probably won’t say anything surprising,” Nichols said, “which may give the market a sigh of relief and gain momentum.”

Wall Street is expecting a firm speech from the central banker, putting the fight against inflation at the heart of the debate, with fresh interest rate hikes expected to quell the economy and price increases.

“I don’t think Powell wants to be in the headlines,” said Art Hogan of B. Riley Wealth Management in surprise.

In the stock market, operators responded to falling bond rates by favoring technology stocks, which are very sensitive to financing conditions and are critical to financing growth.

Amazon (+2.60%), Alphabet (+2.62%) or Meta (+3.38%) shined and ignored a wave of mixed results from some of the industry’s stars.

Graphics card specialist Nvidia (up 4.01% to $179.13) therefore missed its target by a wide margin last quarter and announced a significantly lower-than-expected revenue forecast, with the group reducing customer demand in certain industries, notably video games.

Its forecast was also more cautious than expected, with downward revisions, with customer relations and remote computing (cloud) giant Salesforce (-3.39% to $173.91) also triggering a slowdown in demand and very unfavorable currency effects.

Remote data management company (cloud) Snowflake surged (+23.07% to $196.28) compared to current levels, thanks to better-than-expected turnover and analysts cheering the outlook.

Tesla, one of the few Nasdaq giants (-0.35% to $296.07), in its first trading day after its shares were divided by three, an operation aimed at lowering its price units and making them Easier access to individual investors. As a result, prices have dropped from nearly $900 per unit to less than $300.

Peloton, maker of exercise bikes and connected treadmills, fell sharply (-18.32% to $11.01) after reporting a 27% drop in revenue, well below expectations, and announced that it expects revenue to decline further this quarter.

Shares of Chinese companies listed in New York surged on Thursday, according to the Wall Street Journal, while a deal was nearing a deal that would allow U.S. regulators to verify audits of their accounts. The blockade of the document poses the risk of delisting these companies in New York, especially Alibaba (+7.97%), Pinduoduo (+12.44%) or JD.com (+9.20%).

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