Rising oil prices, unexpectedly good data from the US real estate market and positively interpreted statements by US Federal Reserve Chairman Jerome Powell gave Wall Street a boost during trading on Wednesday. The Dow Jones, which was initially in the red, rose above the important mark of 32,000 points and climbed another record high at 32,009 points. Most recently, the US benchmark index was 1.34 percent higher at 31,960.96 points.
The market-wide S&P 500 rose by 1.05 percent to 3,922.29 meters. The technology-heavy Nasdaq 100 index gained 0.39 percent to 13,246.49 points.
Powell on Wednesday reiterated his view that the economy needs support. The Fed chairman told US MPs that the US economy still has a long way to go to achieve maximum employment and the Fed’s inflation target. This was taken as a signal by investors that the Fed wants to stick to its ultra-loose monetary policy.
“Powell hasn’t been saying anything other than what he’s been saying for a few months,” said Matt Maley, market strategist at Miller Tobacco & Co. His comments have given investors confidence that the Fed is still interested in that To drive up the prices of assets like stocks.
In the United States, the number of new home sales rose unexpectedly in January. New home sales increased by 4.3 percent compared to the month, while analysts had expected an increase of “only” 1.7 percent. In addition, the development of new home sales in December had developed better than previously known.
One of the biggest winners was oil stocks, which benefited from significantly higher oil prices. The price of a barrel of the American West Texas Intermediate (WTI) rose by $ 1.60 to $ 63.25, its highest level in over a year. The shares of Chevron rose by 3.8 percent and those of ConocoPhillips by 4.3 percent. Occidental Petroleum’s shares jumped 9.4 percent.
Johnson & Johnson shares rose 2.2 percent. They were responding to an assessment by the US Food and Drug Administration, according to which the corona vaccine from the pharmaceutical company, which is about to be approved in the USA, is safe and effective.
The benchmark index also went up for bank stocks. Goldman Sachs was up 3.0 percent and JPMorgan was up 1.9 percent.
The titles of the aircraft manufacturer Boeing became the front runners with a plus of 7.0 percent. They once again benefited from hopes for an early corona easing, as did airline shares. American Airlines, United Airlines and Delta Air Lines gained between 1.9 and 7.8 percent.
McAfee stocks were in high demand among the small caps. Most recently they rose by 6.2 percent after the security software manufacturer exceeded analysts’ expectations with its sales. An upgrade of the title by Deutsche Bank also had a stimulating effect.
The Irish drug developer Icon wants to take over the US contract researcher PRA Health Sciences for around twelve billion dollars. With this, the two companies want to forge a leading provider in clinical research. The PRA papers then shot up by 18 percent.
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