Wall Street indexes rose to a record high on Wednesday after investors raised expectations that the Fed will cut interest rate later this month amid weaker-than-expected economic data.
The blue-chip index Dow Jones Industrial Average added 179.32 points to 26,966 points, while the technology benchmark Nasdaq Composite advanced by 0.57% to 8,170.23 points, both closing at a record high. The broader S&P 500 index rose by 0.77% to 2,995.82 points after the consumer and real estate sectors supported the index to reach record levels. The technology sector also recorded a rise of 0.7% to a record high.
Stocks and bonds stopped trading at 1 p.n. ET, while futures trading an hour later. The US financial markets are closed on Thursday for the Independence Day holiday.
If technology companies continue to keep up the trend, and semiconductor manufacturers are seeing a rise in their stock prices, this can cause the S&P 500 to cross the 3,000-point limit in a short time.
The US private sector added 102,000 new jobs in June, according to ADP and Moody’s Analytics, which is well below analysts’ expectations. The disappointing data raises the expectations that the Fed will lower interest rates by the end of July. Last month, the central bank signaled that it eased monetary policy as needed to maintain the current economic expansion.
Earlier on Wednesday, US President Donald Trump wrote on Twitter that the US should align its monetary policy with that of China and Europe, noting that “China and Europe are playing the big game of manipulating their currencies and pumping money into their system, to compete with the US”.
The yields on 10-year government bonds fell below 2%, the lowest level since 2016.
Wall Street marked a strong start of the week after the trade truce between the US and China. The S&P 500 has risen by more than 1% since the beginning of the week and has also closed at a record high. The US and China have agreed to resume their trade talks over the weekend after President Donald Trump has offered some concessions, including no introduction of new tariffs and alleviating restrictions on the technology company Huawei.
However, the initial enthusiasm surrounding the Washington-Beijing truce was overshadowed by threats to introduce new customs duties on imports of European goods.
Corporate stocks performance
Shares of Facebook, Amazon, Netflix, and Google rose on Wednesday, as the trading session closed at 13:00 local time due to the July 4th mark.
Tesla shares rose by more than 4% after the car maker reported good earnings results.
The shares of Cisco Systems rose by 1.8% as it climbs back toward a 57.62 buy point it briefly cleared last month.
Other Dow Jones tech stocks also advanced. IBM gained 0.9%, Intel 0.8%, Apple 0.8% and Microsoft 0.6%. Apple continues to work on the handle of a large cup base with a 215.41 potential buy point. It’s now 5% below the entry.
Top industry group gainers in today’s stock market included automakers, food, and retail stocks. Gaming software, chip and steel stocks lagged, but losses were minimal.
Shares of Symantec climbed to their highest level since May 10, 2018, adding 13.6%, after a report of a potential buyout by chip maker Broadcom.
The stocks of Canopy Growth are up by 2% after the company said on Wednesday that its co-Chief Executive Bruce Linton is stepping down from that role and will leave the board.