WALL STREET ENDS
by Stephen Culp
NEW YORK (Reuters) – The New York Stock Exchange ended significantly higher on Thursday as strong forecasts by large retailers and less concern about future interest rate increases by the US Federal Reserve (Fed) forced investors to take risks.
The Dow Jones Industrial Average gained 1.61%, or 516.91 points, to 32,637.19 points.
The broader S & P-500 gained 79.11 points, or 1.99%, to 4,057.84 points.
The Nasdaq Composite Index rose 305.91 points (2.68%) to 11,740.65 points.
The three major Wall Street indices have been heading for unprecedented weekly gains since mid-March, following a series of consecutive weeks in the red for unprecedented decades.
While U.S. distributors have warned of their annual results in recent weeks, Macy’s has calmed down by raising its earnings forecast for the year as its stock jumped 19.3%.
The discount chains Dollar General and Dollar Tree grew 13.7% and 21.9%, respectively, after announcing higher annual sales forecasts, suggesting that consumers are turning to the cheapest products as inflation peaks in decades.
Wednesday’s minutes of the Fed’s May monetary policy meeting eased fears that the US Federal Reserve could be even more aggressive, a prospect that has fueled market volatility in recent weeks.
“We see an aggressive Fed, but not ultra-aggressive at the moment,” commented Peter Cardillo, chief economist at Spartan Capital Securities in New York.
“Structural inflation has stagnated, but is it transient? Probably not,” he said.
Except for real estate, all major sectors of the S & P-500 index ended in the green.
On the Twitter side, it gained 5.5% after announcing a lawsuit against Elon Musk for revealing his personal involvement in the social network.
Tesla, Amazon and Apple recorded gains and contributed to the performance of the Nasdaq.
Alibaba Group jumped 14.8% after announcing better-than-expected results, despite no forecasts due to health restrictions in China.
(French version of Jean Terzian)