US Market surges as July hot streak continues

8 Jul 2022 , 09:45 AM

The US shares gained further ground on Thursday, 07 July 2022, with the S&P 500 and Nasdaq recording their fourth successive higher closes, amid hopes the central bank would gradually start lightening its policy stance later this year. At the close of trade, the Dow Jones Industrial Average index advanced 346.87 points, or 1.12%, to 31,384.55. The S&P500 index was up 57.54 points, or 1.5%, to 3,902.62. The tech-heavy Nasdaq Composite Index gained 259.49 points, or 2.28%, to 11,621.35. Minutes from the central banks June policy meeting, where the Fed raised interest rates by three-quarters of a%age point, showed on Wednesday a firm restatement of its intent to get prices under control. However, Fed officials acknowledged the risk of rate increases having a larger-than-anticipated impact on economic growth and judged that an increase of 50 or 75 basis points would likely be appropriate at the policy meeting in July. The minutes also said that the participants continued to anticipate that ongoing increases in the target range for the federal funds would be appropriate to achieve the monetary policy committees objectives. The less hawkish tone was echoed in comments from Fed Governor Christopher Waller on Thursday. In calling fears of a US recession overblown, he advocated for a 50 basis-point hike in September. On the economic front, data released by the Commerce Department showed U.S. trade deficit narrowed to $85.5 billion in May of 2022, from $87.1 billion a month earlier. Exports were up 1.2% or $3.0 billion in May from a month earlier, to $255.9 billion, while imports increased to $341.4 billion in May from $339.5 billion in April. Data from the Labor Department showed initial jobless claims rose to 235,000 in the week ended 2 July 2022. On a non-seasonally adjusted basis, initial claims rose by 11,919 from the previous week to 219,507. Powered by Capital Market – Live News