Upbeat economic data push stocks higher
U.S. stocks closed higher on Thursday, 27 September 2018 with the S&P 500 and the Dow Jones Industrial Average snapping a multiday losing streak, as solid data bolstered confidence in the economy a day after the Federal Reserve raised interest rates for the third time this year.
The Dow trimmed gains but rose 54.65 points, or 0.2%, to 26,439.93, bouncing back from a three-day decline. The S&P 500 climbed 8.03 points, or 0.3%, to 2,914, recovering after a four-day drop, and the Nasdaq Composite Index advanced 51.60 points, or 0.7%, to 8,041.97.
Stocks climbed through the morning. However, the bullish tone died down in the afternoon as the benchmark index descended back towards its opening mark.
The Fed on Wednesday raised interest rates in a widely expected move, and indicated it would do so again at its December meeting, as well as three more times in 2019. While the Fed's policy of gradually raising interest rates had been anticipated by market participants, investors cited changing monetary policy as a key potential headwind.
In the latest economic data, jobless claims rose less than expected in the latest week, remaining near multidecade lows. Orders for durable goods rose 4.5%, faster than had been expected. U.S. real gross domestic product for the second quarter rose at a 4.2% annualized rate, unchanged from the earlier estimate. ALso, U.S. pending home sales unexpectedly dropped in August, falling 1.8% in the latest example of weak housing data.
Issues surrounding trade policy also lingered. On Wednesday, President Donald Trump accused Beijing of trying to interfere in the U.S. midterm elections and of attempting to damage him politically. The accusations come as a trade dispute between the two countries grows more heated with the imposition of a 25% tariff on more than $200 million of Chinese imports to the U.S.
The ICE U.S. Dollar index was up 0.7% at 94.838 in Thursday dealings.
Bullions ended lower at Comex on Thursday, 27 September 2018 at Comex. Gold futures on Thursday suffered the lowest finish in almost six weeks, with a leading dollar index moving higher after the Federal Reserve's widely expected decision to raise a key interest rate.
On Thursday, December gold fell $11.70, or 1%, to settle at $1,187.40 an ounce. December silver shed 0.8%, to $14.29 an ounce.
Crude oil climbed on Thursday, 27 September 2018 with the global benchmark's price notching another four-year high at the settlement, as U.S. officials said the sale of domestic reserves wouldn't be used to undercut a rally in crude. Anticipation of supply disruptions caused by the renewal of sanctions on Iran also continued to underpin prices. Meanwhile, natural-gas futures rallied after U.S. data revealed a smaller-than-expected weekly rise in domestic supplies of the fuel.
November West Texas Intermediate crude rose 55 cents, or 0.8%, to settle at $72.12 a barrel on the New York Mercantile Exchange, after losing 1% on Wednesday.
> Trading volume was somewhat lighter-than-usual; 751 million shares changed hands at the New York Stock Exchange.
Looking ahead, August Personal Income, Personal Spending, and PCE Prices, and the final reading of the University of Michigan Consumer Sentiment Index for September will be released on Friday morning.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
