NEW YORK (Reuters) – The New York Stock Exchange smiled again after three sessions of losses on Thursday, buoyed by renewed appetite for growth stocks and measured comments on rates from Fed Chairman Jerome Powell.
The Dow Jones index ended flat (-0.01%, or 4.81 points, at 33,946.71 points) mainly due to the decline in industrial and financial stocks.
But the S&P-500 gained 16.2 points, or 0.37%, to 4,381.89 points and, carried by Amazon (+4.26%) or Apple (+1.65%), the Nasdaq Composite has advanced more clearly, from 128.41 points (0.95%) to 13,630.61 points.
Jerome Powell told the Senate Banking Committee Thursday that the Federal Reserve believes it is “getting closer to its destination” and that common sense dictates raising rates at a “cautious pace,” while pointing out that a large majority of members of the FOMC deemed further increases necessary to bring inflation back to the 2% target.
Financial markets continue to expect 77% of a 25 basis point rate hike from the US central bank at its July meeting, according to the CME barometer FedWatch Tool.
After three consecutive sessions of losses, the S&P 500 navigated between fear of future rate hikes and the rebound in “megacaps”, which ultimately prevailed.
Spirit AeroSystems plunged 9.4% as the aerospace parts supplier announced it was suspending production due to a strike at a Kansas factory. Boeing lost 3.05%.
Accenture fell 1.89% as the IT consultancy said it expects revenue for the current quarter to fall below Wall Street expectations.
(Jean-Stephane Brosse)
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