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US stocks continued to climb on Friday afternoon, pushing even further into record territory, after Federal Reserve Chairman Jerome Powell had two days of testimony before Congress this week comforting investors' expectations of a reduction in interest rates at the end of the month.
What is the performance of the main benchmarks?
The Dow Jones Industrial Average
DJIA, + 0.67%
rose 191 points, or 0.7%, to 27,281, while the S & P 500 index
SPX, + 0.32%
earned 9 points, or 0.3%, at 3,009. The Nasdaq composite index
COMP + 0.49%
was 40 points higher at 8,236, a gain of 0.48%.
These levels were new intra-day highs for each benchmark.
The Dow Jones rose 227.88 points, or 0.8%, to 27,088.08 points, marking its first close above 27,000 points. The S & P 500 also set a record high of 6.84 points, or 0.2%, to finish at 2,999.91. The Nasdaq Composite, which recorded a record close on Wednesday, fell 6.49 points to 8 196.04 points, a loss of 0.1%.
Lily: Dow components that led the first-class stock index to 27,000
What motivates the market?
In his testimony before the Senate Banking Committee, Powell said that the US economy was in a "very good position" but had only partially recovered from the "confidence shock" it had suffered in the past. May because of the trade war between the United States and China. Powell's comments Thursday and his appearance before a panel of the House of Representatives on Wednesday confirmed the Fed's expectations at its meeting on July 30 and 31 to reduce its funding rate of federal funds by at least a quarter and potentially make further reductions before the end of the year.
Powell's moderate tone when he was thinking about the economic outlook and inflation, combined with his complete lack of willingness to correct market expectations, despite a 100% price cut this month, was to investors exactly what they were looking for, said Craig Erlam, senior market analyst. in Oanda, in a note.
Charles Evans, chairman of the Chicago Federal Reserve and a voting member of the central bank's interest rate setting committee, echoed the remarks in a speech on Friday when he said that He was "worried about inflation," saying "a few" cuts may be needed to help raise inflation above 2%, according to Bloomberg.
See: An economy that has become "crazy"? Fed to cut interest rates despite record stock prices and low unemployment
China's trade data showed thatThe country's exports fell last month with slowing external demand, while imports fell even more sharply. Newspaper reports also reported a widening of China's trade surplus with the United States, which rose from $ 26.9 billion in May to $ 29.92 billion.
In the euro area, manufacturing output rose sharply in May, which economists say could signal that the region's manufacturing sector is stabilizing after a long slowdown.
US wholesale prices rose 0.1% in June, compared to a 0.1% drop, according to a MarketWatch survey of economists. From one year to the next, wholesale prices rose 2.1% in June, down from 2.3% in May.
The US earnings season is starting seriously next week, with a large number of large banks ready to kick off the festivities.
See: Banks should shine among the shares of the S & P 500 this turnover
What stocks are under discussion?
Actions of Facebook Inc.
FB + 0.40%
are the focus after President Trump criticized the company's virtual currency project, Libra, on Twitter on Thursday night, saying the currency would have "little value or reliability", and suggesting that the social media company should look for a bank charter to launch a currency. Shares of the social media giant rose 0.36% on Friday.
Actions of Snap Inc.
BREAK, + 0.62%
and Stitch Fix Inc.
SFIX, -0.43%
Goldman Sachs analysts, Heath Terry, have gone from "neutral" to "buy". Snap shares rose 0.13% on Friday, while Stich Fix shares rose 0.9%.
Illumina Inc.
ILMN, -16.03%
updated its forecast for the second quarter on Thursday after the close, indicating that revenues are expected to be $ 50 million lower than forecast and below analysts' expectations. Shares of the genetics company fell 15.7% on Friday.
Actions of Milacron Holdings Corp.
MCRN, + 25.65%
jumped 26% after the plastics manufacturer and Hillenbrand Inc.
HI, -11.86%
announced that Hillenbrand would acquire the company in a transaction in cash and shares of Milacron valued at 33.5% compared to Thursday's closing price.
Accenture PLC
ACN, + 0.44%
Last Thursday, its Board of Directors appointed Julie Sweet as the company's new Executive Director and David Rowland, Interim Executive Director, was named Executive Chairman. The title has increased by 0.32%
How are other markets traded?
10-year Treasury Bill yield
TMUBMUSD10Y, -1.44%
less expensive at 2.114%
In Asia, shares closed higher on Wednesday with the CSI 300 in China
000300, + 0.62%
0.6%, the Nikkei 225 from Japan
NIK + 0.20%
+ 0.2% and Hong Kong's Hang Seng Index
HSI, + 0.14%
progressing by 0.1%. European shares were slightly higher, with the Stoxx Europe 600
SXXP, + 0.04%
Closure less than 0.1% higher.
In commodity markets, crude oil prices
CLQ19, + 0.20%
were up slightly, with gold prices
GCQ19, + 0.84%
The US dollar
DXY, -0.24%
was trading 0.2% lower.
Additional report by Joy Wiltermuth
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