- Increase in weekly jobless claims
- Accenture, Salesforce up on forecast
September 23 (Reuters) – US stocks closed higher on Thursday as investors seemed 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 subside.
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.”
Energy (.SPSY) and Financials (.SPSY) were the S&P sectors that gained the most traction.
Unofficially, the Dow Jones Industrial Average (.DJI) rose 502.55 points, or 1.47%, to 34,760.87, the S&P 500 (.SPX) gained 52.84 points, or 1.20% , at 4,448.48 and the Nasdaq Composite (.IXIC) added 151.28 points. , or 1.02%, at 15,048.13.
Shares of IT service provider Salesforce surged, and the company pushed the S&P (.SPX) and Dow (.DJI) strongly during the session after raising its annual profit forecast. Read more
Accenture won 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 given up hope 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.
Reporting by Caroline Valetkevitch in New York; Additional reporting by Ambar Warrick in Bengaluru; Editing by Maju Samuel and Lisa Shumaker
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