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The New York Dow Jones Stock Exchange index closed positive on Thursday (March 7), while the S&P 500 closed at a record high and the Nasdaq closed up 1.5%, with the biggest gains from technology and growth stocks. This comes amid growing investor confidence in the likelihood that the Federal Reserve (Fed) will cut interest rates this year.
The Dow Jones Industrial Average closed at 38,791.35 points, an increase of 130.30 points or +0.34%, the S&P500 index closed at 5,157.36 points, an increase of 52.60 points or +1.03%, and the NASDAQ index closed at an increase of 16,28,73. 241.83 points or +1.51%.
The Philadelphia Semiconductor Stock Index rose 3.36% to close at an all-time high. This is because investors have flocked to buy shares in chip manufacturing companies. It is expected to benefit from demand related to artificial intelligence (AI) technology.
Mr revealed Jerome Powell, Chairman of the Federal Reserve (Fed), to a committee of the United States Senate that the Fed is close to being convinced that inflation is falling towards the target level of 2%, which makes cuts in rates interest is possible.
Mr Powell’s comments reinforced investors’ hopes that the Fed will cut interest rates for the first time in June this year.
In addition, the release of economic data supports the trend of interest rate cuts. The US Department of Labor revealed that the number of first-time applicants for unemployment benefits was 217,000 last week. No change from the previous week. and in line with analysts’ forecasts.
Previous disclosures show that the US labor market is slowing. But it’s still strong. Investors will await the release of February US non-farm employment data on Friday. To enter details about labor market conditions
Nine of the 11 S&P 500 stocks closed higher, with communications and IT services the biggest gainers. They closed up 1.84% and 1.89%, respectively.
Big growth stocks helped support the market, such as Meta stock rising 3.2% and Invidia stock rising 4.5%.
Shares of major consumer goods retailer Kroger rose 9.8% after forecasting annual sales and profit that beat market expectations.
Source: InfoQuest News Agency
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