Markets ended higher on Wednesday following Powell’s testimony before the Congress. The Fed Chief stated that the central bank would act appropriately to support the country’s economic growth. Further, minutes from the Fed’s latest meeting also hinted toward an easier monetary policy. Meanwhile, the three major benchmarks hit record intraday highs and closed in the green.
The Dow Jones Industrial Average (DJI) increased 0.3%, to close at 26,860.20. The S&P 500 increased 0.5% to close at 2,993.07. The tech-laden Nasdaq Composite Index closed at 8,202.53, gaining 0.8%. The fear-gauge CBOE Volatility Index (VIX) decreased 8.5% to close at 12.90. Advancers outnumbered decliners on the NYSE by a 2.07-to-1 ratio. On Nasdaq, a 1.26-to-1 ratio favored advancing issues.
How Did the Benchmarks Perform?
The Dow dipped 22.7 points to close in the green. Gains for the 30-stock index were broad-based. Shares of Chevron CVX and Cisco CSCO advanced 1.7% and 1.4%, respectively and supported gains for the Dow. At its session highs, the Dow hit 26,983.45 — a new intraday record high. While, Cisco carries a Zacks Rank #2 (Buy), Chevron holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 added 13.4 points to end in positive territory. Of the 11 major sectors of the S&P 500, eight ended in the green, with communication services and energy stocks leading the advancers. Communication Services Select Sector SPDR Fund (XLC) and Energy Select Sector SPDR Fund (XLE) increased 1.1% and 1.3%, respectively on Wednesday. The broader index also hit a fresh intraday record of 3,002.89.
Meanwhile, the Nasdaq gained 60.8 points to also close in the green. Gains for the Nasdaq were broad-based. Shares of Netflix NFLX gained 0.3% and boosted the tech-heavy index. Nasdaq too hit an intraday high of 8.228.60 — its fresh intraday record high.
Powell’s Testimony and Fed Minutes Boost Investor Sentiment
In his testimony before the House Financial Services Committee, Fed Chief Jerome weakness in the global economy and trade war woes have weighed on the U.S. economy. Further, Powell also stressed on the fact that the central bank will “act as appropriate to sustain the expansion.” Economists opine that Powell’s statements correspond to a highly likely rate cut at the end of the Fed’s next meeting late in July.
Moreover, the minutes from Fed’s last meeting in June revealed that members of the Fed felt that the case for easier monetary policies had strengthened. Such developments boosted the investor sentiments.
Stocks That Made Headlines
American Airlines Stock Up on Bullish Q2 Unit Revenue View
Shares of American Airlines Group AAL gained 1.8% on Jul 10 to close the trading session at $32.94. (Read More)
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