US stocks rose on Friday. The Dow Jones index and the S&P 500 index even closed at new records. The growth was largely driven by banking companies, which benefited from favorable quarterly results. On the other hand, the stock market was dragged down by the securities of the car company Tesla.
Tesla shares fell nearly nine percent. Although the car company is there on Friday introduced the long-awaited self-driving taxi However, Cybercab disappointed investors that the company’s CEO, Elon Musk, did not provide details about the timetable for its production and the resolution of possible regulatory hurdles.
The Dow Jones index, which includes shares of ten major American companies, gained 0.97 percent and ended trading at 42,863.86 points. The broader S&P 500 index rose 0.61 percent to 5,815.03 points and the Nasdaq Composite index, which includes many companies from the advanced technology sector, rose 0.33 percent to 18,342.94 points.
Shares of the largest bank in the US, JPMorgan Chase, gained about 4.4 percent as the company’s third quarter earnings beat analysts’ expectations. Smaller rival Wells Fargo, whose shares were up 5.6 percent, beat estimates. “We had favorable earnings reports from some major financial companies. This is a good start to the earnings season,” said analyst Evan Brown of UBS Asset Management.
On the foreign exchange market, the US dollar remained unchanged against the euro on Friday. According to analysts, the latest economic data is in line with expectations that the US central bank, the Fed, will cut interest rates next month. The same European currency was trading at $1.0935 around 22:00 CEST, close to Thursday’s close.
The US Commerce Department reported on Friday that US producer prices were unchanged in September after rising 0.2 percent in August. The year-on-year growth rate of producer prices decreased to 1.8 percent from 1.9 percent in August. The published data is another sign of easing inflationary pressures in the US.
“Financial markets are happy because nothing says against lowering interest rates. The only question is how quickly the Fed will cut rates,” Standard Chartered analyst Steven Englander said, according to Reuters. In September, the Fed moved to cut interest rates for the first time in more than four years, cutting its main rate by half a percentage point to a range of 4.75 to 5.00 percent.
2024-10-12 07:56:00
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