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Wall Street adds to earnings after Powell's rate cut announced



The three major stock indices traded higher on Wall Street on Thursday after Federal Reserve Chairman Jerome Powell announced that the central bank was still targeting a reduction in interest rates. because of uncertainties in trade.

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After several days of uneven business activity over fears that the Federal Reserve is refusing to move ahead with the expected cuts, investors have been optimistic following Powell's statements that the central bank's prospects for the US economy are hampered by trade tensions.

Many participants in the Federal Open Market Committee "have found that the arguments for a more accommodative monetary policy have been strengthened," he said in a testimony before the the House Financial Services Committee.

Powell returns to Capitol Hill for a second round of testimony before the Senate.

TeleprintersecurityLatestChange% Chg
I: DJIDOW JONES MEANS26996.33+136.13+ 0.51%
SP500S & P 5002999.055.98+ 0.20%
I: COMPCOMPOUND INDEX NASDAQ8213.21213110.68+ 0.13%

Mr Powell also said that a strong job report published in June did not change the central bank's economic outlook or its interest rate policy. He will testify Thursday before a panel of the Senate.

In the economic news, initial claims for state unemployment benefits fell by 13,000 to 209,000 seasonally adjusted for the week ended July 6, the lowest level since April, the Department said. work.

The shares of technology companies will be active after the French government approved Thursday a new tax on these companies, following an investigation into the measure made by the US government. The 3% tax imposed on companies that generate an overall business turnover of about $ 845 million and whose digital business figure rises to $ 281 million in France will enter effective retroactive to the beginning of 2019.

Meanwhile, investors are eagerly awaiting a political meeting on July 31 to see if the Federal Reserve is going ahead with the rate cuts.

In terms of corporate earnings, Delta Air Lines shares surged on better-than-expected second quarter results. Atlanta-based carrier profits rose 32 percent to $ 2.35 a share, while revenues reached $ 12.5 billion.

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DALDELTA AIR LINES INC.59.790.32+ 0.54%

Last month, President Trump and Chinese President Xi Jinping decided to revive trade talks after the failed talks in May.

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Senior White House officials had "constructive" talks with Chinese Vice Premier Liu He and Minister Zhong Shan earlier this week, and a face-to-face meeting is possible.


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