The stock exchanges in New York ended with gains on Friday. Investors reacted with relief to the long-awaited speech by Fed boss Jerome Powell.
In that speech, he emphasized that inflation is still too high and that the Federal Reserve will raise interest rates if necessary. At the same time, the umbrella of US central banks will proceed with caution. Analysts heard little surprise in Powell’s words and that was mainly seen as something positive.
The Dow Jones index ended 0.7 percent higher at 34,346.90 points. The broader S&P 500 also rose 0.7 percent to 4405.71 points and tech exchange Nasdaq gained 0.9 percent to 13,590.65 points.
In addition to Powell, many other central bank leaders also spoke at a meeting in the US ski resort of Jackson Hole. Christine Lagarde, president of the European Central Bank (ECB), stressed that interest rates in the eurozone will remain high if necessary to bring inflation down.
Investors also received new quarterly reports from companies. Marvell Technology fell 6.6 percent. The American chip maker performed better than analysts had expected last quarter. However, the outlook for the current quarter was disappointing. Fashion company Gap gained more than 7 percent, despite sales falling short of analysts’ expectations. Department store chain Nordstrom fell 7.7 percent after its quarterly report.
Black Berry gained 18 percent in New York after media reports of a possible takeover of the Canadian tech company. Investor Veritas would be interested in the former smartphone manufacturer that now focuses on cybersecurity and the ‘internet of things’.
Boeing is reportedly able to deliver 737 MAX aircraft to China again and gained 2.8 percent. According to Bloomberg news agency sources, it could be a matter of just weeks before Boeing delivers the first planes to Chinese customers. Boeing went through a major crisis after two accidents in a short time with the 737 MAX, which was not allowed to fly for a while in 2019.
Hawaiian Electric plummeted nearly 19 percent. The company has been sued for its alleged part in the wildfires on the island of Maui. The electricity company also suspended its dividend.
The euro was worth 1.0797 dollars, compared to 1.0788 at the close of the European stock exchanges. A barrel of US oil rose 1.2 percent in price to $ 79.97. Brent oil became 1.5 percent more expensive and cost $ 86.64 per barrel.
2023-08-25 20:36:18
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