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© Reuters.
Investing.com – The very happy July stock market rallied on Friday with the major averages setting new highs and the S & P 500 closing above 3,000 for the first time.
The index closed up 0.46% after peaking at 3,013.62. The country finished up 0.9% after its second gain of 200 points in two days; Friday's gain was 244 points. The blue chip index hit a new high of 27,333.79. The 0.6% added with a new high of 8,246.
The recovery was fueled by the deep conviction that the Federal Reserve will cut interest rates at its July 30-31 meeting. Lower rates increase the value of stocks and bonds.
For several weeks, Fed Chairman Jerome Powell has announced a rate cut. He told Congress twice this week that the central bank was ready to "act appropriately" to support the economic expansion, which is now in its tenth year. Inventories increased accordingly. His concern – and that of the Fed – was motivated by the slowdown in business investment, the low wage growth and trade policies of the Trump administration, particularly its commercial battle with China.
In fact, interest rates fell slightly on Friday, falling 0.3% to 2.113%. Yield has fallen more than 20% this year.
Oil prices rose slightly on Friday, despite skepticism that the current recovery may not last. gross futures ended up 1 cent at $ 60.21 a barrel. paid 20 cents to $ 66.72.
The stock recovery was largely driven by non-technology stocks, particularly industrial stocks, notably (NYSE :), caterpillar (NYSE :), 3M (NYSE 🙂 and Boeing NYSE :).
Stocks of chips increased, up 1.9%. The chip giant Intel (NASDAQ 🙂 was also a winner, up 2.7%.
Facebook (NASDAQ 🙂 rose 1.8% as the Wall Street Journal reported that the Federal Trade Commission had approved a $ 5 billion fine for its investigation of user data processing by the social media company. Shares rose 0.2% again after hours.
Pharmaceutical and health care stocks were down, with Johnson & Johnson (NYSE 🙂 slumping on a report that a federal grand jury would investigate whether the company had lied about the presence of asbestos in its talc. J & J, Merck (NYSE 🙂 and Pfizer (NYSE 🙂 were the losers of Dow.
on his investigation into the processing of user data by the social media company
on his investigation into the processing of user data by the social media company
For the week, prices finished up 1.52%, up 0.8% and Nasdaq up 1%. For the year, the S & P 500 grew by 20%, the Dow by 17.2% and the Nasdaq by 24.3%.
Next week, the second quarter earnings season will accelerate, driven by banking and financial stocks. JPMorgan Chase (NYSE 🙂 will report before Tuesday's opening.
Winners and losers of the S & P 500
JB Hunt Transport Services (NASDAQ :), Signet Jewelers (NYSE 🙂 and women's apparel manufacturer L Brands (NYSE 🙂 were among the top S & P 500 titles of the day.
Illumina (NASDAQ :), Johnson & Johnson (NYSE :)) and medical device manufacturer Boston Scientific (NYSE 🙂 were among the S & P 500's late-comers.
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