Wall Street closed this Wednesday in mixed terrain. Still, two of its leading indicators, the Dow Jones and the selective S&P 500, registered records after the good inflation data for July in the United States.
According to data at the close of the New York Stock Exchange, the Dow Jones advanced by 0.62% or 220.30 points, to 35,484.97. The S&P 500 gained 0.25% or 10.95 points, to 4,447,70.
As for Nasdaq, it fell by a slight 0.16% or 22.95 points, to 14,765.13.
US inflation rate remained at a 13-year high in July
Inflation remained high in July as the economic recovery continued. Still, prices presented evidence of cooling amid pandemic-related supply problems. There were also signs that the recent advance in coronavirus infections is beginning to limit some business activity.
According to Jack Albin, Chief Investment Officer at Cresset Capital Management in Chicago, this is good news. It helps the Fed stay calm.
Inflation has dictated market moves in recent months. Investors fearing higher price pressures could force the Federal Reserve to ease back on its super-loose accommodative stance sooner than expected.
Albin says that inflation increasing at a slower rate fits the Fed’s narrative. Thus, they can stick with their current strategy.
Another positive sentiment for the stock market was the United States Senate passing a bipartisan infrastructure package worth $1 trillion on Tuesday. There are also plans to invest an additional $3.5 trillion to fight climate change and poverty but face strong opposition from Republicans.
With the new infrastructure bill, equipment maker Caterpillar Inc and Deere & Co, construction materials supplier Vulcan Materials Co and steelmaker Nucor Corp increased in early trading.
By sectors, the highest gain basic materials, industrial and financial sectors posted the highest gains.
Only the health sector ended in red, with a slip of 0.97%.
Among the thirty Dow Jones stocks, the increases of Caterpillar surged by 3.55%. Meanwhile, Walgreens raised by 2.66%, and Dow Inc added 1.77%.
On the other hand, Visa dropped the most, yielding 1.26%, UnitedHealth lost 0.98%, and Nike shed 0.58%.
0 (0 votes)
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. If you are interested in following the latest news on the topic, please follow Finance Brokerage on Google News.