© Reuters. FILE PHOTO: Traders Working on the New York Stock Exchange
By Shreyashi Sanyal
(Reuters) – Thursday saw a record high after the Federal Reserve announced it could lower interest rates as soon as possible, to compensate for growing risks to global and domestic growth.
The US Federal Reserve left interest rates unchanged at the end of its two-day June meeting Wednesday, but pledged to "act appropriately" to maintain economic health. [1
The S & P 500 index, which rose 7.4% in June and 2007, is well on track to recover the previous month's losses and hit an intraday record high of 2,956.20 on Thursday.
"Chairman Jerome Powell explained that the case for additional housing has worsened, as market participants wanted to hear," said Robert Johnson, chief executive officer of Economic Index Associates, New York.
"A prolonged trade war with China could be the catalyst that drives the US economy into recession, and rate cuts may be seen as a preemptive strike by the Fed to prevent it."
Financials remained flat during the period Energy index rose 1.98%, the largest increase among all eleven large S & P sectors as oil prices rose more than 3% on renewed tensions in the Middle East after Iran dropped a US military drone.
At 9:53 CET, the value rose 241.66 points or 0.91% to 26,745.66 and the S & P 500 jumped 28.07 points or 0.96% to 2,954.53.
The technology sector increased by 91.66 points, or 1.15%, to 8,078.98.
The Technology Sector gained 1.57%, pushing the S & P 500 higher with its Large Cap Favorites. Microsoft Corp. (NASDAQ:) and Apple Inc. (NASDAQ) head the indictment.
Oracle Corp (NYSE :), which gained 8.15% after the company software company predicted a higher than expected profit for the current quarter, also helped.
Boeing (NYSE 🙂 Co gained 1.01% after talks with other airlines over the sale of its 737 MAX after announcing a letter of intent for 200 ground-based aircraft from British Airways owner IAG (LON 🙂 had received. ,
The cruise operator Carnival (NYSE 🙂 Corp fell 9.77%. This was the biggest decline among S & P companies after cutting its annual forecast for the sudden ban on cruises to Cuba by the Trump administration and expecting lower ticket prices in the coming months.
Rivals Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd each lost more than 2%.
The data showing that the number of Americans applying for unemployment benefits fell more-than-expected last week indicated an underlying labor market strength despite a strong slowdown in employment growth in May.
Ongoing emissions outperformed a 6.14-to-1 decline on the NYSE and a 3.14-to-1 ratio on the Nasdaq.
The S & P index has hit 92 new 52-week highs and two new lows, while the Nasdaq has hit 99 new highs and 16 new lows.