[ad_1]
NEW YORK (AP) – US stocks rose sharply on Wall Street Tuesday at noon, as investors digested upbeat comments about Mexican trade, as well as a recovery in the tech sector and an encouraging signal on interest rates of Federal Reserve Chairman Jerome Powell.
Mexican Foreign Minister Marcelo Ebrard said Mexico could probably reach an agreement with the United States when officials meet on Wednesday and rule out the US plan to impose 5% tariffs on imports. Mexican products. President Donald Trump intends to impose tariffs as of June 10 as part of a broader immigration dispute.
The threat of a trade battle with Mexico comes from investors already worried about the escalation of the trade war between the United States and China. The stock market experienced its first monthly loss of the year in May, as investors fled to safer positions such as bonds.
At the same time, Powell said the Fed "was watching closely" the evolution of trade and that it "would act appropriately" to support US economic expansion, a signal according to which the Fed would be willing to lower rates if necessary. Some investors are even beginning to bet that the next Fed decision will be a rate cut later this year.
Technology stocks recovered and contributed to the rise of the market as a whole. On Monday, tech companies collapsed amid fears that several large Internet companies could be subject to increased scrutiny by antitrust regulators.
The chip makers were all higher. Micron increased by 5.2% and Texas Instruments by 3%. Other technology companies have rallied. Microsoft rose 2.2% and Apple, 3.6%.
Facebook is lagging behind the market and oscillates between modest gains and losses. A legal advisor from the European Union said that social media networks could be required to remove any text, photo or other media deemed to be defamatory by a court anywhere in the world.
Banks also posted gains as lower bond prices boosted US Treasury yields to 10 years. Banks benefit from higher yields because they can charge more interest on loans. Bank of America grew by 4.1% and Citigroup by 4.8%.
Utilities lagged the market, which is another sign that investors have shifted from secure investment funds to riskier but potentially more profitable investments.
POINT OF VIEW: The S & P 500 index rose 1.5% at 11:30 am ET. The Dow Jones Industrial Average rose 426 points, or 1.7%, to 225 245 points. The high-tech Nasdaq composite advanced 1.9%.
FOREIGN: European equities have globally risen as a result of a report that the unemployment rate fell to its lowest level in more than a decade in the 19 countries that use the economy. # 39; euro. The German DAX jumped by 1.5% and the CAC 40 in France by 0.5%.
FEED FEEDS HOPE: President Jerome Powell said the US Federal Reserve was prepared to respond to the Trump administration's trade disputes to protect US economic expansion if it decided it would be necessary. The current expansion next month will become the longest period of uninterrupted growth in US history, exceeding that of the decade in the 1990s.
"We do not know how or when these problems will be solved," said Powell in his speech. "We are watching closely the implications of these developments for the US economic outlook and, as always, we will act appropriately to support the expansion."
The rapid gains recorded by the market this year were partly fueled by the Fed's decision to adopt a more patient approach to its rate policy after a steady rate hike for two years. Investors hoped that it would go further and reduce interest rates to give a new impetus to economic growth.
BOXED IN: The online storage provider Box dropped 7.9% after giving investors a weak business forecast for the year. The company has mentioned the move to longer sales cycles. The company also said it was "more cautious" to give a schedule to reach the billion dollar business figure.
LINGERING LUSTER: Luxury jewelery Tiffany grew 5.4% after exceeding Wall Street's earnings guidance for the first quarter. Investors focused on solid profits in a very mixed ratio.
A key figure measuring sales in established stores was below expectations and Tiffany warned that higher tariff costs could reduce profits.
PHARMACEUTICAL STORE PROCESSING: CVS Health grew 4.1% after announcing plans to add more health care services, including medical equipment and dietitians, to more than 1,500 stores in the coming years. The transformation will even include space for occasional yoga classes.
Processing is part of a broader movement in pharmacies to expand their services as they are becoming more competitive for the needs of their health care customers. Rival Walgreens is already experimenting with the addition of primary care offices to his stores. Its stock has increased by 3.2%.
[ad_2]
Source link