Wall Street Mostly Higher After Strong Rally the Day Before

Stock markets in New York continued to rise on Thursday after the strong rally the day before. Investors were still chewing on the words of US central bank president Jerome Powell.

 

The Fed boss said in a speech on Wednesday that interest rates in the United States may be raised in smaller steps as early as this month. That message was well received on Wall Street.

A better-than-expected inflation report, announced before the close, also provided some relief. US core inflation, the Fed’s favourite inflation gauge, rose less than expected in October and was lower than in September. The financial markets are also awaiting the official jobs report from the US government, which will be published on Friday. Developments in the labour market are also important for the interest rate policy of the Fed.

Shortly after the start of trading, the Dow Jones index was 0.3 percent lower at 34,487 points. The broad S&P 500 gained 0.2 percent to 4,088 points. The Nasdaq rose 0.3 percent to 11,502 points.

Apple rose 0.1 percent. Elon Musk, the owner of Twitter, said after a conversation with Apple boss Tim Cook that his previous allegations against the company turned out to be based on a misunderstanding. Earlier this week, Musk accused the iPhone manufacturer of censorship, complained about the commission that Apple charges and claimed that Apple had threatened to remove Twitter from the App Store.

Tesla itself rose 1.9 percent. Elon Musk is also CEO of the electric car manufacturer, recalling 435,000 vehicles in China due to problems with the rear lights. The unveiling of Tesla’s first truck is also awaited.

Kroger lost 0.4 percent despite better-than-expected numbers. The supermarket chain performed better than expected last quarter and became more positive about the annual results. Designer Brands plummeted 15 percent. The shoe chain lowered its full-year profit forecast.

Salesforce lost more than 9 percent despite better-than-expected quarterly results. However, investors were shocked by the announcement that co-CEO Bret Taylor will leave the software company at the end of January.

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