The Dow Jones New York Stock Exchange closed higher on Monday (Feb. 27), bolstered by investors scrambling to buy after the market plunged last week. However, the Dow recovered only slightly. Because investors are still worried that the Federal Reserve (Fed) will continue to raise interest rates to stem inflation.
- The Dow Jones Industrial Average closed at 32,889.09 points, up 72.17 points or +0.22%,
- The S&P500 index closed at 3,982.24 points, up 12.20 points, or +0.31%, and
- The Nasdaq Index closed at 11,466.98 points, up 72.04 points, or +0.63%.
The market gained positive factors from investors buying stocks. After all 3 major indices fell more than 1% on Friday (February 24) and throughout the past week. All three major indices fell about 3%.
Seven of the 11 stocks that comprise the S&P500 closed in positive territory overnight. Led by the luxury goods index rose 1.18 percent, the industrial sector rose 0.83 percent, and the utilities sector dropped 0.77 percent.
Technology stocks, which are sensitive to interest rates. It rose after US Treasury yields slowed last night. Alphabet stock rose 0.83%, Apple stock rose 0.82%, Amazon stock rose 0.28%, Microsoft stock rose 0.38%.
Shares of biotechnology company Seagen soared 10.40 percent after the Wall Street Journal reported Pfizer was in talks to acquire Seagen. While the news sent Pfizer shares down 2.32 percent.
Shares of Union Pacific, the major U.S. railroad operator, rose 10.09 percent after Lance Fritz announced he was resigning as chief executive.
However, the New York Stock Exchange gained only marginally. Because investors are worried that the Fed will continue to raise interest rates to stem inflation. Most recently, analysts from NatWest Markets expect the Fed to raise interest rates by 0.50% in the March 21-22 meeting after the US released a higher-than-expected personal consumption expenditure (PCE) price index. in Jan. The PCE index is a measure of inflation that can detect changes in consumer behavior. and covers a broader range of prices for goods and services than the Consumer Price Index (CPI).
In addition, the latest released information indicates that The US economy remains strong and will further increase pressure on the Fed to raise interest rates. According to the US Department of Commerce. Basic durable goods purchases This is a capital goods order excluding aircraft and arms. Investors, and indicators of business spending plans, rose 0.8% in January, well above analysts’ expectations for a 0.1% gain, after falling 0.3% in December.
The National Association of Realtors (NAR) said its pending home sales index rose 8.1% in January. This was the biggest increase since June. 2020 and above analysts’ expectations of a mere 1.0% increase.
In this regard, the index of contracts for sale of houses that are pending to be closed for sale It is a measure of the number of second-hand home purchase contracts that have been signed but haven’t closed the sale yet. And it usually takes about 1-2 months from signing a contract until closing.
By InfoQuest News Agency (28 Feb. ’23)
Tags: dowjones, Dow Jones, Stock Market, New York Stock Exchange
