Slight Christmas rally on Wall Street
Hopes of interest rate cuts in the near future continue and with them the positive mood on Wall Street. The US indices continue to rise slightly, with the Dow being supported above all by the strong Intel share price.
In anticipation of an imminent interest rate cut by the US Federal Reserve, US stock markets closed with gains on Tuesday. All three major US stock indices rose on the first day of trading in the final week of the year in thin trading, with the S&P 500 reaching its highest level since January 2022. On Wall Street, the Dow Jones blue-chip index ended the day up 0.43% at 37,546 points. The broader S&P 500 was 0.43% higher at 4774 points. The S&P 500 is on the verge of its biggest quarterly gain in three years and is just one percent away from its all-time high in January 2022. The Nasdaq technology index gained 0.55% to 15,074 points.
"Everyone is still enjoying the fruits of last week's rally and expectations of much lower interest rates," said Michael James, head of equity trading at Wedbush Securities. The three major US indices had closed little changed on Friday, but posted their eighth consecutive week of gains. According to a survey, 83 percent of traders expect the Fed to cut interest rates by at least 25 basis points in March.
Crude oil prices rise
Energy stocks recorded the largest percentage increase. They benefited from rising crude oil prices, which climbed to their highest level of the month due to the threat of further escalation in the Middle East conflict. At the same time, optimism about interest rate cuts by the Fed fueled hopes of higher demand.
Among the individual stocks, Intel shares were among the biggest winners. The semiconductor company's shares rose by 4.0 percent. Intel is receiving 3.2 billion dollars from Israel for the construction of a factory in the south of the country.
Shares in the English soccer club Manchester United climbed 2.2 percent in New York after the British entrepreneur Jim Ratcliffe announced his entry as a minority shareholder on Sunday.
Read also:
- Why there is still no EU funding for green Saar steel
- 3 billion Saar Fund is unconstitutional
- Lack of snow also opens up new opportunities for winter tourism
- Abrupt end to e-car subsidies
Source: www.ntv.de
