Wall Street Closes Enthusiastic as It Analyzes Fed Comments on Rate Cut
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The main Wall Street indices reported gains at the close of the session this Thursday, March 7.
Investors trust that the Federal Reserve is finishing confirming through economic data that inflation is converging towards its goal of 2 percent, as Jerome Powell pointed out on his second day testifying in front of Congress, which has increased forecasts favor seeing interest rate cuts this summer.
At the close of negotiations we found that the Nasdaq registered an increase of 1.51 percent, at 16,273.38 points, while the S&P 500, which reached historical highs with 5,157.36 points, advanced 1.03 percent and for the Dow Jones The increase was 0.34 percent, ending with 38,791.35 units.
Among the companies that reported the highest returns this day is Rivian Automotive, which presented an increase of 13.42 percent in its share price after announcing that it will pause its plans to build a factory in Georgia, which will save it more than $2.25 million in capital expenditures, as it has decided to reduce its costs as it prepares to launch a cheaper electric vehicle.
On the other hand, after the latest monetary decision of the European Central Bank, in which it kept interest rates unchanged, the region’s stock indices closed this Thursday with advances of 1.20 percent and 0.77 percent in the case of the IBEX 35 in Spain and the CAC 40 in France.
Thus, despite the fact that local negotiations began their operations in profit territory, today they closed again in the red for the second time, since the S&P/BMV IPC of the Mexican Stock Exchange subtracted 0.43 percent with 55 thousand 49.49 units and the Institutional Stock Market ended with a variation of 0.46 percent less, with one thousand 138.14 points.
The oil market continued to register high volatility that in this session left both contracts with decreases of 0.11 percent for West Texas Intermediate (WTI) and 0.05 percent less for the Brent benchmark. This as traders weigh the outlook for interest rates as well as unrest in the Middle East.