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Shares rose Wednesday after the US central bank said the country's interest rate level was almost neutral, which is a change in tone from the governor's statement two months ago.
During the trading day climbed Dow Jones 620 points, which made it the best day of the index since March 26 of this year. The index, composed of 30 industrial stocks, climbed more than 1,000 points this week to reach 2,5,367.35 points.
S & P 500 was increased by 2.3%, investors having interpreted the central bank's comments as meaning that there would be less interest rate increases in 2019, which could potentially derail the market bullish. Dow and S & P are adding to November after Wednesday's turnaround.
Nasdaq climbed 2.95% with Amazon up, up 6.09 percent. Apple and Microsoft finished 3.85 and 3 percent respectively.
– interest rates remain low by historical standards and remain just below estimates indicating a neutral level for the economy; they do not slow down or accelerate economic growth, Powell said in a speech to the New York Economic Club on Wednesday.
The Trump compromise
Slight concerns over the US-China trade dispute also contributed to the rise in shares on Wednesday. According to a New York Times article, Trump worried about the market and the economic repercussions of a long trade war with China. This could lead Trump to seek a compromise with China, "said the Times.
The report comes after Trump told the Wall Street Journal on Monday that it was "very unlikely" that the US would not increase penalty cuts to 25%, or $ 200 billion, with Chinese products, which put pressure on the market.
BoeingIndonesian investigators said they were now considering a possible maintenance problem that could cause Lion Air to crash since last month.
Actions lifted on less fear
Salesforcethe stock climbed nearly 11% after the company posted better results than expected. Other cloud-related companies, like ServiceNow and pisa also climbed Wednesday.
Among the big and heavy ended Citigroup, General Electric and Google 3.34, 3.96 and 3.75 percent respectively. Tiffany 11.81 percent after a low earnings report, which showed that weaker Chinese tourism weighed heavily in sales.
The CBOE volatility index, also known as the VIX index or "fear index", fell from 3.94% to 18.27%. Since last week, the index is down 15%.
GDP as expected
Figures provided by US statistical authorities show that US gross domestic product grew by 3.5% in the third quarter of 2018, measured at the annual rate. It was in line with expectations.
At the same time, it has been reported that US stocks rose 0.7% in October from September.
Sales of new single-family homes in the United States declined 8.9% on a monthly basis in October. It offers a seasonally adjusted annual rate of 544,000 units.
According to Direct Macro, sales are expected to grow 3.7%.
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