Stock market positive on Jerome Powell briefing


The American stock markets were firmly positive on Wednesday during the afternoon trade in New York. Investors responded to a speech by Fed boss Jerome Powell. There is also hope that the United States and China will come closer together during the G20 summit at the end of the week in the trailing trade conflict.

The Dow Jones index recorded 2 percent higher at 25,338 points around 7:30 PM ETC. The broad S & P 500 gained 1.7 percent to 2726 points and technology counselor Nasdaq gained 2.1 percent at 7230 points.

Central bank chief Powell said, among other things, that interest rates in the US are only slightly below the neutral level. This caused speculation on Wall Street that the Federal Reserve might take a break earlier than expected when raising interest rates gradually.

The fading tensions between China and the US also seem to provide relief. An industry group such as Caterpillar and Boeing that supplies many aircraft to Chinese airlines were very popular, with 4 percent plus.

Software company Salesforce also made a price jump of more than 7 percent. The quarterly figures of the company turned out to be much better than what connoisseurs calculated on average. Jewelery chain Tiffany was just 11 percent down. Especially Chinese tourists keep their hands on the flick.

Ford (plus 0.6 percent) also focused attention on itself. The car company announced several shifts in the organization. With this, Ford wants to save costs and increase its production. In contrast to General Motors (GM), which eliminated more than 14,000 jobs earlier this week, no jobs will be lost at Ford.

Retail chain Sears was 1.6 percent lower. There are reports that a hedge fund of chairman Eddie Lampert and investor Cyrus Capital Partners are preparing a takeover in order to keep the ailing Sears afloat.

The euro was worth $ 1.1373, against $ 1.1284 at the closing of the European stock markets earlier in the day. A barrel of American oil became 1 percent cheaper at $ 51.09. Brent oil fell 0.9 percent in price to $ 59.73 per barrel.

By: Abaigael Schlomski

Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

By Lesley Woutersen

Recent Posts


About us

EconomicInform, is a product of EconomicInform LLC. We sincerely believe that economics is one of the most interesting and most underappreciated – in terms of getting some enjoyment out of reading the subject articles – sciences. More on that - at the link. Feel free to drop us a line.