According to Powell statements
US stock exchanges make up for the previous day’s losses
March 6, 2024, 11:06 p.m
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Fed Chairman Powell says he believes interest rates can be cut this year. This doesn’t cause any euphoria among US investors – but it doesn’t cause any stomach ache either. After the dull day before, they are coming out of cover again and are hitting tech stocks in particular.
The latest statements from Fed Chairman Jerome Powell have lifted Wall Street. The Dow Jones Index the standard values closed 0.2 percent higher on Wednesday at 38,661 points. The technology-heavy one Nasdaq advanced 0.6 percent to 16,031 points. The broad one S&P 500 gained 0.5 percent to 5104 points.
According to experts, investors were calm because Powell’s words were exactly in line with market expectations. The chairman of the US Federal Reserve left the exact timing of the first interest rate cut in limbo. Inflation has decreased significantly, it was said. However, monetary authorities needed “greater confidence” in a sustained decline in inflation before they could cut key interest rates. “None of Powell’s news is really good news, and we’re still on hold,” said David Russell, chief strategist at broker TradeStation. “However, there is now at least a consensus about where we are going. So the current high interest rates are scaring investors less and less.” After Powell’s statements, most market participants continue to expect a first interest rate cut in July.
New data on the US labor market also ensured a relaxed mood. According to a survey in February, US companies created fewer jobs than experts expected. The bottom line is that 140,000 jobs were created last month, as the personnel service provider ADP announced in its survey of companies. Experts had expected a job increase of 150,000 in the private sector. This fueled hopes that the Fed would make a comparatively quick turnaround in monetary policy, as it tried, among other things, to cool down the hot labor market with high interest rates.
CrowdStrike on the rise
The individual stocks in demand included shares listed in New York JD.com. The Chinese online retailer’s titles rose by 16.2 percent after strong quarterly figures. A price jump of almost eleven percent for the cybersecurity giant CrowdStrike also boosted other industry stocks. Shares of SentinelOne and Fortinet won almost five and 3.3 percent. CrowdStrike delighted investors with a 2025 outlook that exceeded analyst expectations.
Estee Lauder, on the other hand, flew out of the depots with a loss of 1.3 percent. As the independent US laboratory Valisure announced, high levels of the cancer-causing chemical benzene have been found in some acne products from the group’s brands such as Estee Lauder, Clinique and Up & Up from Target. Things also continued to decline for Apple after the bad news about a billion-dollar fine from the EU. iPhone sales in China have recently weakened, with shares losing 0.6 percent.