Wall Street rises after upbeat economic data, recovery in megacaps

New York, June 27 (BNA): US stock indexes rose on Tuesday, as big-cap stocks recovered and upbeat capital goods orders data eased concerns about a slowdown in the US economy in the face of aggressive interest rate increases by the Federal Reserve.

A Commerce Department report showed orders for non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans, increased 0.7% in May, while economists polled by Reuters had expected orders to remain unchanged.

New home sales and consumer confidence data are due later today, Reuters reports.

“The feeling is growing that the Fed is definitely nearing the end of its rate hike regime, and markets will be looking for any indication that would help resolve the ambiguity presented by the Fed at the last meeting,” said Andersen founder Peter Andersen. Capital management.

Market participants are also focusing on the European Central Bank Forum in Sintra, Portugal where several key policy makers including Federal Reserve Chairman Jerome Powell will speak this week.

Wall Street’s winning streak came to a halt last week after Powell said there were more rate hikes ahead. Traders took advantage of the 76.9% chance that the Fed will raise interest rates by 25 basis points to a range of 5.25%-5.50% at its July meeting, according to CME Group’s Fedwatch tool.

Despite the recent market weakness, US stock indices are set to post second-quarter gains, bolstered by a rally in developing stocks, upbeat earnings reports, and hopes the Fed will soon end its monetary tightening campaign.

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At 9:36 a.m. EST, the Dow Jones Industrial Average was up 71.30 points, or 0.21%, to 33,786.01, the S&P 500 was up 17.23 points, or 0.40%, to 4,346.05, and the Nasdaq Composite was up 84.63 points, or 0.63. %, at 13420.40.

Market heavyweights Amazon Tesla and Nvidia rose about 1% each, while Meta Platforms added 2.0% after Citigroup pushed its price target higher on Wall Street.

Snowflake rose 2.6% after the cloud data analytics company announced a partnership with Nvidia to allow customers to build AI models using their own data.

Shares of US-listed Chinese companies such as Alibaba Group and JD.com rose nearly 2% after Chinese Premier Li Qiang announced stimulus plans and said economic growth in the second quarter will be higher than the first.

Alphabet, Google’s parent company, fell 0.8% after Bernstein downgraded the stock to “market perform.”

Walgreens Boots Alliance fell 8.5% as the pharmacy chain cut its fiscal year profit forecast due to lower demand for COVID-19 tests and vaccines.

Lordstown Motors fell 45.4% as the US electric truck maker filed for bankruptcy protection and put itself up for sale after failing to resolve a dispute over a promised investment from Foxconn.

Advance issues outnumber losers 1.65 to 1 on the NYSE and 1.15 to 1 on the Nasdaq.

The S&P posted eight new highs in 52 weeks and one new low, while the Nasdaq recorded 18 new highs and 48 new lows.

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