Jakarta, CNBC Indonesia – The United States (US) stock market opened higher on Thursday (6/24/2021), having the opportunity to bring the Superpower Country’s benchmark stock index to a new record high at the close of the early morning.
The Dow Jones Industrial Average rose 176.5 points (+0.4%) at 08:30 local time (20:30 WIB) and after 30 minutes increased to 246.4 points (+0.73%) to 34,120.65 . This is the highest level to shift the position on June 14 last. The S&P 500 grew 21.8 points (+0.5%) to 4,263.65 and the Nasdaq gained 103.8 points (+0.73%) to 14,375.52.
The sectors that lifted the US stock exchange at the opening were communications, consumer, healthcare, and technology. Tesla shares were up more than 2%, while GM and Caterpillar gained 1% each.
Over the past week, the S&P 500 index dropped 1.9% while the Dow Jones plunged 3.5% after the US central bank (Federal Reserve / The Fed) indicated an increase in its benchmark interest rate as early as 2023 and inflation this year will be higher, up to 3% more.
But recently, the boss of the US central bank (Federal Reserve / The Fed) Jerome Powell in front of Congress stated that inflationary pressures in the superpower are temporary, so investors are optimistic again.
Investors also turned to monitor data on claims for jobless benefits last week which was reported to reach 411,000, or higher than analysts projected in a Dow Jones poll that estimated the figure of 380,000. However, the realization of the data improved from the previous week’s claims which reached 412,000.
“The employment report is yet another proof that the economy is coming back to life, albeit perhaps in a more challenging fashion than anticipated at this point,” said Mike Loewengart, Managing Director of E-Trade Investments, quoted as saying CNBC International.
Market participants are also monitoring negotiations for a $1 trillion infrastructure package in which bipartisan senators — who sit at the table despite having different parties — make progress on the proposal to meet U.S. President Joe Biden at the White House on Thursday.
Banking stocks rise ahead of pressure test (stress test) by the Fed on the financial sector later tonight, the results of which will show the extent to which US banks have survived amid several scenarios of economic stress due to the pandemic.
So far, banks have been forced to stop their dividend distribution and share repurchase actions in the market (buyback) so that the capital is collected to face the risk of a pandemic. The market expects the policy will be relaxed so that Goldman Sachs shares rose 1%.
From the corporate side, market players will pay close attention to Nike and FedEx, which are scheduled to release their financial performance for the first quarter of 2021.
CNBC INDONESIA RESEARCH TEAM
(ags/ags)
– .
