S&P 500 hits record high as Fed signals rate cuts

By Shreyashi Sanyal (Reuters) - The S&P 500 index touched an all-time high on Thursday, after the Federal Reserve indicated that it could cut interest rates as early as July to combat growing risks to global and domestic growth.

Reuters June 21, 2019 00:07:58 IST
S&P 500 hits record high as Fed signals rate cuts

SP 500 hits record high as Fed signals rate cuts

By Shreyashi Sanyal

(Reuters) - The S&P 500 index touched an all-time high on Thursday, after the Federal Reserve indicated that it could cut interest rates as early as July to combat growing risks to global and domestic growth.

The U.S. central bank left rates unchanged at the end of its two-day June policy meeting on Wednesday, but pledged to "act as appropriate" to sustain economic health.

Wall Street's main indexes have gained in recent weeks on expectations of a rate cut and hopes of a revival of trade talks between the United States and China at the Group of 20 meeting next week in Osaka, Japan.

The benchmark S&P 500 index, which has risen 7% so far in June and is on track to recoup its previous month's losses, hit an intraday record high of 2,956.20 on Thursday.

"It was always going to be difficult for the Fed to live up to high market expectations. While the bar was set high, policymakers appear to have cleared it with ease while also leaving themselves with plenty of outs," said Craig Erlam, senior market analyst at OANDA in London.

"It's clear that the G20 meeting next week will either give them (the Fed) that out or make the decision to cut quite straightforward."

Financial stocks dropped 0.42%, while the energy index jumped 2.16%, the most among all 11 major S&P sectors, as oil prices surged over 4% on renewed tensions in the Middle East after Iran shot down a U.S. military drone. [O/R]

At 11:23 a.m. ET the Dow Jones Industrial Average was up 179.03 points, or 0.68%, at 26,683.03 and the S&P 500 was up 17.35 points, or 0.59%, at 2,943.81.

The Nasdaq Composite was up 46.86 points, or 0.59%, at 8,034.19.

The technology sector rose 1.16%, boosting the S&P 500 by the most, with Oracle Corp leading the charge.

Shares of the business software maker jumped 8.30%, after it forecast current-quarter profit above estimates.

Boeing Co gained 0.83% after the planemaker said it is in talks with other airlines for sales of its 737 MAX after receiving a letter of intent for 200 of the grounded planes from British Airways owner IAG.

Cruise operator Carnival Corp slid 10.22%, the most among S&P companies, after cutting its profit forecast for the year on the Trump administration's sudden ban on cruises to Cuba and weakening demand in Europe over political uncertainty.

Rivals Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd dropped about 3% each.

Buoying sentiment further was data which showed the number of Americans filing applications for unemployment benefits fell more than expected last week, pointing to underlying labor market strength despite a sharp slowdown in job growth in May.

Advancing issues outnumbered decliners by a 2.92-to-1 ratio on the NYSE and by a 1.62-to-1 ratio on the Nasdaq.

The S&P index recorded 95 new 52-week highs and three new lows, while the Nasdaq recorded 113 new highs and 26 new lows.

(Reporting by Shreyashi Sanyal and Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila and Arun Koyyur)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son