Dow Jones closes in positive territory
Interest rate fears are subsiding – prices are rising
October 31, 2023, 10:27 p.m
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Disappointing economic data from China, uncertainty caused by wars in Israel and Ukraine and rising energy prices are still unsettling investors. But the upcoming decision by the US Federal Reserve Bank gives hope – it apparently does not want to raise interest rates any further.
Expectations of an interest rate break by the US Federal Reserve on Wednesday pushed Wall Street higher. The Dow Jones Index the standard values were 0.38 percent higher at 33,052.87 points. The broader one S&P 500 advanced by 0.65 percent to 4193.8 points. The technology stock market index Nasdaq was almost half a percent higher at 12,851.24 points.
“Today’s move higher is driven by growing consensus that the Fed is unlikely to raise interest rates again this year,” commented Greg Bassuk, managing director of asset manager AXS Investments in New York. But he also pointed to the statements made by large corporations about rising energy prices and the ongoing uncertainty surrounding the wars in Israel and Ukraine. “The ups and downs in the stock market reflect the ups and downs in investor sentiment,” Bassuk said.
Michael Field, a strategist at the US analysis company Morningstar, was also cautious. “I don’t want to read too much into today’s price gains,” said the expert. “Because we are now back at a point where stocks are neither too expensive nor too cheap. And as long as the economic picture doesn’t change significantly, there is no reason why the stock markets should rise sharply by the end of the year.”
Caterpillartitles lose 6.3 percent
Disappointing economic data from China once again raised doubts about how strong the recovery of the second largest economy will be. “The Purchasing Managers’ Index has slipped below the threshold of 50 points again, despite hundreds of measures that the government in Beijing has adopted in recent months to prevent such a development,” said Jochen Stanzl, market analyst at broker CMC Markets. This depressed prices for industrial metals such as copper, zinc, lead, tin, nickel and aluminum.
When it came to individual stocks, companies were in demand such as: Pinterest had presented quarterly figures above analyst expectations. Shares in the online photo bulletin board shot up 19.4 percent. On the other hand, the titles of the construction machinery manufacturer flew out of the depots Caterpillar, which slipped 6.65 percent. Also the titles of the pharmaceutical company Amgen fell by 2.85 percent after disappointing quarterly figures. The shares of Nvidia fell by almost one percent.
The Wall Street Journal had reported that the artificial intelligence (AI) company may be forced to cancel orders for high-tech chips worth up to $5 billion to China to comply with new U.S. rules. government to follow. A forecast reduction weighed on the US clothing company’s papers VF Corp, which lost almost 13.96 percent. The shares of the technology company Arista Networks However, according to an optimistic forecast for the fourth quarter, they rose by 14 percent.