© Reuters. WALL STREET ENDS HIGHER
by Sruthi Shankar, and Chuck Mikolajczak
NEW YORK (Reuters) – Wall Street, soothed by the latest statements from the federal Reserve on interest rates, is based on the values high techs and a decline of bond yields to ensure its progress during the last session of the week.
The federal Reserve expects the continuation of strong economic growth in the United States and it does not distinguish any risk on the horizon that could slow the pace of its interest rate hikes.
The investors believe that the central bank will move rates three times this year, the first – a quarter of a point is expected as early as next month, with a probability of 95.5%, according to Thomson Reuters data.
The markets will still have the opportunity next week to hear what the Fed has to say with the first auditions of its new president Jerome Powell in front of the House of Representatives and the Senate.
The Dow Jones has gained 347,51 points (1.39 per cent) to 25.309,99 points. The S&P-500, wider, took 43,34 points, or 1,60%, to 2.747,30. The Nasdaq Composite has advanced its side of 127,30 points (1,77%) to 7.337,39.
Throughout the week, the S&P has gained 0.56 per cent, the Dow Jones industrial average of 0.37% and the Nasdaq is 1.35%.
“It could be volatile next week with Powell and economic statistics; it is known that the new chairmen of the Fed have a tendency sometimes to say too much; therefore, the probability that the market is caught short is above average,” said Tom Attempts (the Sevens Report).
The central bank “warns the markets that even if we made a lot of bad blood about inflation and a rise in rates, it has not really seen anything that justifies that it becomes even more rigorist”, said Alec Young (FTSE, Russell).
On the bond market, borrowing us 10-year gained 13/32, and made 2,8714%, compared to 2,917% on Thursday evening.
In the segment of high-tech, Hewlett Packard Enterprise (NYSE:HPE) and HP (NYSE:HPQ) Inc have finished sharply rising thanks to their solid results, announced the previous day; in addition, HPE has expressed his intention to return for seven billion dollars to shareholders.
HPE has gained 10.5% and HP Inc to 3.5%. The sectoral index rose 2.17%.