Wall Street closes at fresh records

Wall Street closes at fresh records

Traders work on the floor at the NYSE in New York
Traders work on the floor at the New York Stock Exchange. (Photo: REUTERS/Brendan McDermid/File Photo)

NEW YORK: Wall Street's three main stock indices cruised to fresh record closes on Friday (Jul 12), ending the week buoyed by investor confidence the Federal Reserve will cut interest rates this month.

The broad-based S&P 500 closed above the 3,000-mark for the first time, gaining 13.86 points (0.46 per cent) to settle at 3,013.77.

The benchmark Dow Jones Industrial Average jumped 243.95 points (0.90 per cent) to end the week at 27,332.03 and the tech-heavy Nasdaq rose 48.10 points (0.59 per cent), closing at 8,244.14.

All three also notched modest gains for the week, after Federal Reserve Chairman Jerome Powell cheered markets comments strongly suggesting the Fed would cut interest rates at its next policy meeting in less than three weeks.

Jack Ablin of Cresset Wealth Advisors said investors also were encouraged by outlook for better-than-expected quarterly revenues as corporate earnings season approaches.

"But the next question we expect is: where do we go from there?" he said.

"The market needs to feed on something. The appetite of the market for low rates is insatiable. The question now is can they shift their attention to earnings."

Among individual companies, Ford Motor jumped 2.9 per cent after jointly announcing a new a multi-billion-dollar new electric vehicle project with Germany's Volkswagen.

But Johnson & Johnson sank 4.2 per cent after Bloomberg reported the company was facing a Justice Department probe into whether the company may have lied to the public about the cancer risks created by its talcum powder.

Shares in gene sequencing company Illumina Inc cratered, falling 16.1 per cent, after Bank of America downgraded the stock and the company warned its revenues may disappoint.

Source: AFP/ec

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