• Increase in weekly jobless claims
  • Accenture, Salesforce up on forecast
  • Indices: Dow up 1.2%, S&P up 1.2%, Nasdaq up 1%

September 23 (Reuters) – US stocks gained more than 1% on Thursday as investors appeared relieved at the Federal Reserve’s stance on reducing stimulus and raising interest rates.

The optimistic outlook from Accenture (ACN.N) and Salesforce (CRM.N) helped support the market, while the US Food and Drug Administration on Wednesday evening authorized a booster dose of the Pfizer-BioNTech (PFE) vaccine. N), COVID-19. for people 65 and over. Read more

Concern over the ripple effect of China Evergrande (3333.HK) continued to ease.

The Fed said on Wednesday it could start cutting its monthly bond purchases as early as November and that interest rates could rise faster than expected by next year. The November deadline has been largely integrated by the markets.

In a press conference after the statement, Fed Chairman Jerome Powell said the bar for raising rates from zero is much higher than for cutting. Read more

“This is a rally after a very good Fed meeting,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

“For me it showed that there weren’t any surprises and that things were as expected,” he said. “Any Fed rate hike is a long way off and so much can change between now and then.”

Among the major industrial sectors in the S&P 500, energy (.SPSY) rose 3.4% and financials (.SPSY) rose 2.5%, gaining the most ground. Real estate (.SPLRCR) and utilities (.SPLRCU) were the only sectors in 11 to post losses, both around 0.5%.

The Dow Jones Industrial Average (.DJI) rose 506.5 points, or 1.48%, to 34,764.82, the S&P 500 (.SPX) gained 53.34 points, or 1.21%, to 4,448.98 and the Nasdaq Composite (.IXIC) added 155.40 points, or 1.04%, to 15,052.24.

A Wall Street street sign is visible near the New York Stock Exchange (NYSE) in New York, United States, September 17, 2019. REUTERS / Brendan McDermid

Shares of IT service provider Salesforce ended up 7%, and the company provided a strong boost to the S&P (.SPX) and Dow (.DJI) during the session after raising its annual profit forecast. Read more

Accenture gained 2.5% after the computer consulting firm improved its outlook for the first quarter. Read more

Concerns eased further over a potential default by Chinese property developer Evergrande, even as Reuters reported that some holders of the company’s dollar bonds had abandoned hopes of securing a coupon payment before a deadline. Thursday key. Read more

Investors ignored data showing sluggish growth in business activity and an increase in jobless claims, in line with expectations of slower economic growth in the third quarter. Read more

During the session, the S&P 500 broke its 50-day moving average, after trading below the indicator for three full sessions – its biggest such breach since early March.

The advancing issues outnumbered the declining ones on the NYSE by a ratio of 1.91 to 1; on the Nasdaq, a ratio of 2.66 to 1 favored the advances.

The S&P 500 posted 26 new 52-week highs and four new lows; the Nasdaq Composite recorded 97 new highs and 47 new lows.

The volume on the US stock exchanges was 9.84 billion shares, compared to an average of 10.07 billion over the last 20 trading days.

First major breach since early March

Reporting by Caroline Valetkevitch in New York; Additional reporting by Sinéad Carew in New York, Ambar Warrick in Bengaluru; Editing by Maju Samuel and Lisa Shumaker

Our standards: Thomson Reuters Trust Principles.


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