The Dow Jones Index’s best day in 5 weeks…jumped 331 points
On Thursday, Wall Street benefited from the rise in investor sentiment with a new successful deal, after an initial public offering of shares of the company ARM, which specializes in producing chip designs for a group of semiconductor manufacturers. The main stock indices ended the day’s trading in the green zone, and the Dow Jones Industrial Average jumped 331 points. On its best day since the first week of last August.
By the end of trading on Thursday, the rising points in the most famous index in the world represented approximately 1% of its value at the beginning of the day, and the broader S&P 500 index rose by 0.84%, while the Nasdaq index only rose by 0.81%. The producer price index exceeding analysts’ expectations did not negatively affect the markets, although it contributed to increasing the chances of the Federal Reserve sticking to its strict policies for a period of time.
ARM stock rose nearly 25% on its first day of trading in the US market today, Thursday, raising investors’ hopes that the largest technology company offering this year will lead to the launch of an initial public offering (IPO) market that has been quiet for a while. The initial public offering price of the stock was set at $51 on Wednesday, ending trading on Thursday at $63.59 per share.
Before the start of Thursday’s trading, and in contrast to many of the positive readings recorded in recent months, the US producer price index, one of the most important measures of inflation in the world’s largest economy, exceeded expectations in August, as prices recorded an increase of 0.7%, compared to The previous month, while economists’ expectations before that were at 0.4%.
In Europe, the European Central Bank raised interest rates to their highest levels ever on Thursday, in an attempt to calm inflation and consumer prices. The bank said Thursday’s hike means that “interest rates have reached levels that, if maintained for a sufficiently long period, will make a significant contribution to the return of inflation to the desired target in due course.”
European stocks ended their trading on Thursday with an increase of 1.61%, after the bank indicated that the cycle of increases was approaching its end. However, Christine Lagarde, President of the European Central Bank, stressed that “inflation in Europe is still very high.”
The basic resources sector rose by 4.2% after the Chinese central bank announced that it would reduce the reserve requirement ratio in most banks by 25 basis points, starting last September 15, in the latest step to gradually strengthen its faltering economy.
The European Central Bank’s decision to raise the interest rate on deposits, for the tenth time in a row, by a quarter of a percent to 4%, which is the highest level ever, came after an unprecedented series of interest hikes from negative 0.5% in June 2022 to the record level. Currently, with the bank seeking to reduce inflation, which has significantly, and for a long period, exceeded its target.
Relatedly, oil prices rose on Thursday to their highest levels since the beginning of the year, as expectations of supply shortages overcame fears related to weak economic growth and rising crude inventories in the United States.
Brent crude rose nearly 2% to $93.70, and reached $93.68 during the session, its highest level since November 2022.
US West Texas Intermediate crude also increased by nearly 1.9% to $90.16, and also reached its highest level in ten months at $90.26.
The International Energy Agency said on Wednesday that Saudi Arabia and Russia’s extension of oil production cuts until the end of 2023 means that the market will witness a significant shortage during the fourth quarter. Prices fell slightly after inventory data in the United States before rising again.
The Organization of the Petroleum Exporting Countries (OPEC) also stuck to its forecast for strong growth in global oil demand in 2023 and 2024.
Crude inventories in the United States rose by four million barrels last week, which contradicted the expectations of analysts in a Reuters poll for a decrease of 1.9 million. Fuel stocks also rose more than expected as refineries boosted their production.
2023-09-14 21:49:38
#Dow #Jones #Indexs #day #weeks…jumped #points
