U.S. Stocks Rally Amid Easing Worries About Possible Rate Hike
02 Maio 2024 - 5:20PM
IH Market News
Stocks fluctuated early in the session on Thursday before moving
sharply higher over the course of the trading day. The major
averages all showed strong moves to the upside after ending
Wednesday’s trading narrowly mixed.
The major averages pulled back off their best levels going into
the close but remained firmly positive. The Dow jumped 322.37
points or 0.9 percent to 38,225.66, the Nasdaq surged 235.48 points
or 1.5 percent to 15,840.96 and the S&P 500 advanced 45.81
points or 0.9 percent at 5,064.20.
The strength that emerged on Wall Street came as traders seemed
to breathe a sigh of relief following the Federal Reserve’s
monetary policy announcement on Wednesday.
Traders have recently expressed some concerns the Fed’s next
monetary policy move could actually be an interest rate hike rather
than a cut, but Fed Chair Jerome Powell post-meeting remarks seem
to have alleviated those worries.
“Not only did Powell choose not to give a hawkish press
conference, he took great pains to be dovish,” said Chris
Zaccarelli, Chief Investment Officer for Independent Advisor
Alliance. “At every turn he looked on the bright side of data –
from higher-than-expected inflation to recent lower-than-expected
economic growth – and dismissed any suggestions that the Fed was
pivoting from rate cuts to rate hikes.”
He added, “He explicitly said he believes their next move would
be a cut – even if it will take longer to get to that cut than they
believed a short time ago – and set the bar extremely high for rate
hikes.”
Earlier in the day, stocks saw considerable volatility as
traders reacted to the latest batch of U.S. economic data,
including a Labor Department report showing a surge by labor costs
in the first quarter of 2024.
The Labor Department said unit labor costs soared by 4.7 percent
in the first quarter following a revised unchanged reading in the
fourth quarter.
Economists had expected labor costs to shoot up by 3.2 percent
compared to the 0.4 percent increase that had been reported for the
previous quarter.
“Productivity growth wasn’t strong enough to significantly
mitigate the rise in wages last quarter,” said Nationwide Financial
Markets Economist Oren Klachkin. “The strong rise in unit labor
costs is another in a string of recent data points indicating that
inflation pressures remain relatively high.”
A separate Labor Department showed initial jobless claims came
in unchanged last week, while a Commerce Department report showed
the U.S. trade deficit narrowed slightly in March.
Sector News
Transportation stocks moved sharply higher over the course of
the session, resulting in a 2.5 percent spike by the Dow Jones
Transportation Average.
Avis Budget (NASDAQ:CAR) and C.H. Robinson Worldwide
(NASDAQ:CHRW) skyrocketed on the day after reporting their
quarterly results.
Substantial strength also emerged among semiconductor stocks, as
reflected by the 2.2 percent surge by the Philadelphia
Semiconductor Index.
Retail stocks also showed a significant move to the upside as
the day progressed, driving the Dow Jones U.S. Retail Index up by
2.0 percent.
Housing, computer hardware and brokerage stocks also saw
considerable strength, while pharmaceutical stocks bucked the
uptrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance on Thursday. While Hong Kong’s
Hang Seng Index surged by 2.5 percent, Japan’s Nikkei 225 Index
edged down by 0.1 percent and South Korea’s Kospi dipped by 0.3
percent.
The major European markets also ended the day mixed. While the
U.K.’s FTSE 100 Index climbed by 0.6 percent, the German DAX Index
slipped by 0.2 percent and the French CAC 40 Index slid by 0.9
percent.
In the bond market, treasuries moved modestly higher over the
course of the session after seeing early weakness. Subsequently,
the yield on the benchmark ten-year note, which moves opposite of
its price, dipped 2.4 basis points to 4.571 percent after reaching
a high of 4.651 percent.
Looking Ahead
The Labor Department’s monthly jobs report is likely to be in
the spotlight on Friday, although a report on service sector
activity may also attract attention.
On the earnings front, tech giant Apple (NASDAQ:AAPL) is among
the companies releasing their quarterly results after the close of
today’s trading.
SOURCE: RTTNEWS
CH Robinson Worldwide (NASDAQ:CHRW)
Gráfico Histórico do Ativo
De Ago 2024 até Set 2024
CH Robinson Worldwide (NASDAQ:CHRW)
Gráfico Histórico do Ativo
De Set 2023 até Set 2024