Wall Street closes higher after Fed decision

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Published on 29 July 2020 22:22 |
Views: 3.512
| Topics: Federal Reserve

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NEW YORK (AFN) – The US stock exchanges closed with gains on Wednesday following the Federal Reserve’s interest rate decision. It pledged to use all possible means to support the US economy to get through the corona crisis, and left interest rates in the United States as expected. In addition, Boeing, Starbucks and General Electric, among others, opened the books.

The Dow-Jones index ended 0.6 percent higher at 26,539.57 points. The broad-based S&P 500 gained 1.2 percent to 3,258.44 points and the Nasdaq technology exchange rose 1.4 percent to 10,542.95 points.

Fed Chairman Jerome Powell said the US economy likely experienced the strongest contraction ever in the second quarter. The fact that the number of virus infections is now rising again is not a good sign in the eyes of the central bank head. The Fed has been pumping a lot of money into the economy for some time now, including by buying up US government bonds and corporate bonds.

AMD

Among the companies, attention was focused on chip maker Advanced Micro Devices (AMD). The stock rose 12.5 percent after the company raised its sales forecast. AMD took advantage of the sharply increased demand for chips for data centers and PCs as a result of working from home.

Aircraft maker Boeing not only had to deal with the grounding of its 737 MAX aircraft, but also the consequences of the corona pandemic for the aviation sector. The company suffered a loss. Boeing fell almost 3 percent in value on the stock exchange. General Electric lost more than 4 percent after reporting a billion-dollar loss in the past quarter.

Starbucks

Coffee chain Starbucks (plus 3.7 percent) also opened the books and recorded a loss in the recent period. However, some recovery is visible. Internet merchant eBay took advantage of the fact that people made more online purchases. However, investors did not react enthusiastically here. EBay’s share price fell by more than 3 percent.

A notable climber was Eastman Kodak. The company that was once famous for its photo rolls wants to transform itself into a producer of raw materials for medicines with the help of a government loan. The company gained more than 300 percent more after trading in the stock was halted for some time.

The euro was worth $ 1.1783, compared to $ 1.1772 when the European stock markets closed earlier today. A barrel of American oil cost 0.6 percent more at $ 41.29. Brent oil climbed 1.3 percent in price to $ 43.79 a barrel.

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  1. It is unbelievable that investors are still looking at the FED.

  2. I am curious if the iex editors dare to headline next time ‘Wall street / IEX closes higher due to day traders’. I think these people are now setting the course and there is little fundamental about it.

  3. If the economy is going much worse now, the doe will hit an all-time high this year.
    I speak fables.
    It just depends on which advice is given ….. !!!

  4. The worse the messages, the higher the rates.
    Upside down world !!

  5. Are there any shorters in the room?

  6. Cph-five wrote down 29 July 2020 22:58:

    Are there any shorters in the room?

    They are at the back of the room.
    They come into view when every reason for lung has disappeared.

  7. ruud11 wrote down 29 july 2020 23:04:

    They come into view when every reason for lung has disappeared.

    So on November 4 🙂

  8. Full throttle someone will see the agenda for tomorrow if this is not going to be 3% – 5% off

  9. Friday green but again a cigar from its own box.
    Half week USA already green while AEX red.

  10. Great news: The Fed promises to continue to support the US economy. That is something like Rutte3 that promises to continue to drive the country, or the NS that promises to run trains.

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