The Dow New York Stock Exchange ended higher on Wednesday (July 6) as investors picked up on minutes from the Federal Reserve’s June meeting, which indicated that The Fed is committed to curbing the spike in inflation.
- The Dow Jones Industrial Average closed at 31,037.68 points, an increase of 69.86 points or +0.23%,
- The S&P 500 index closed at 3,845.08 points, up 13.69 points, or +0.36%, and
- The Nasdaq index closed at 11,361.85, up 39.61, or +0.35%.
The Federal Reserve Board released the minutes of its June 14-15 Fed meeting yesterday. In one section states that The Fed is committed to using its tools to control inflation. Most of the Fed committees agreed that It is appropriate to continue raising interest rates to curb inflation. It is likely that the Fed may raise interest rates another 0.50%, or 0.75%, at its July meeting.
Zachary Griffiths, analyst at Wells Bank Fargo said The minutes of the Fed meeting showed that Fed committee sees the impact of inflation and try to communicate with the market clearly The Fed is committed to continuing its tightening policy if inflation continues to spike. Although doing so may cause a slight recession.
Eight of the 11 stocks calculated in the S&P500 closed in positive territory, led by utility stocks up more than 1%, with Duke Energy up 1.17 percent and Excelon Corporation up 1.47 percent. Northland General Electric jumped 2.28 percent.
The tech stock index rose 0.88%, with Cisco Systems up 1.74 percent, Adobe up 1.68 percent, Alphabet up 1.16 percent, and Microsoft up 1.28 percent.
Investors also buy Defensive Stocks, which are safe stocks that can withstand economic cycles well. such as health care stocks Merck & Co shares were up 0.53 percent, United Health rose 2.1 percent and Bristol-Myers Squibb shares were up 0.34 percent.
However, energy stocks fell. After WTI oil prices fell to their lowest level in 12 weeks, Diamondback Energy was down 3.38%, Exxon Mobil was down 1.82 percent and Chevron was down 1.31%.
Investors are still worried about the recession. After the US bond market hit another inverted yield curve last night. Short-term bond yields rebounded above long-term bonds. which indicates the trend of an economic recession
Meanwhile, investors are eyeing the release of US non-farm payrolls on Friday. Analysts predict that Employment numbers will increase by just 250,000 in June. Below 390,000 positions in May The unemployment rate in June is expected to remain stable at 3.6%.
By InfoQuest News Agency (07 Jul 65)
Tags: dowjones, dow jones, stock market, new york stock market
