Left Menu
Development News Edition

US stocks closer higher amid Fed's signals of gentler monetary policy


US stocks closed sharply higher, finishing the week on a high note, after tech stocks surged, job market retained strength and US Federal Reserve chair hinted at slower monetary tightening.

The Dow Jones Industrial Average on Friday closed 746.94 points, or 3.29 per cent, dramatically higher to 23,433.16. The S&P 500 jumped up 85.05 points, or 3.43 per cent, to 2,531.94, Xinhua news agency reported.

The Nasdaq Composite Index surged 275.35 points, or 4.26 per cent to 6,738.86.

Fed chairman Jerome Powell pacified growing market fears subsequent to Apple's slash of quarterly revenue forecast on Thursday, which incurred steep losses in the three major indexes.

Powell stressed Fed officials are patient and keeping a close eye on the voices of financial market, calling Fed policy as flexible and clung to real-time economic developments.

"As always, there is no preset path for policy," Powell said, along with his predecessors Janet Yellen and Ben Bernanke at the American Economic Association's annual meeting in Atlanta on Friday.

"And particularly with muted inflation readings that we've seen coming in, we will be patient as we watch to see how the economy evolves," he noted.

He added that the US central bank would not hesitate to adjust its balance sheet reduction plan if it causes problems in the markets. That means altering its massive bond-purchasing program initially implemented in late 2008 to rescue the collapsing US financial system.

"If we ever came to the conclusion that any aspect of our plans" was causing a problem, he said, "we wouldn't hesitate to change it."

Rebounds in tech sector continued in the afternoon trading session, eroding some of the deep slumps of US stocks bore previously this week.

All of the 11 primary sectors rallied in this week's final trading day, with the information technology sector up 4.4 per cent and the communication services up over 4 per cent, leading the winners.

On the economic front, stronger-than-expected employment data helped regain steam for the US economy.

Job gains occurred in health care, food services and drinking places, construction, manufacturing, and retail trade.

Yet the unemployment rate went up to 3.9 per cent, which was highest level since July, 2018.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

WEF 2020: Trump seems politically correct in pulling out from Paris Agreement

If the survey of the World Economic Forum WEF is believed, Trump seems to enjoy the confidence of his people in flaying climate intuitions and climate activists. His preference for economic development over environmental protection not only...

From home to healthcare, here are Robotic innovations transforming lives

Lovot is equipped with more than 50 sensors such as thermography, microphone array, obstacle detection, and touch sensor to generate motion and emotions in real-time....

Translating words to deeds: Achieving gender parity in access to financial resources

... ...

SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...

Videos

Latest News

UPDATE 2-Angola may seek arrest warrant for dos Santos, co-suspect found dead in Lisbon

Angola could issue an international arrest warrant for billionaire Isabel dos Santos if she fails to cooperate with a fraud investigation in which she has been named as a suspect, its chief prosecutor was quoted as saying.Angola has named d...

People from Jamia Milia, Kashmir to disrupt peace in U'khand: Rawat

Chief Minister Trivendra Singh Rawat on Thursday said he had inputs that people from Jamia Milia and Kashmir had entered Uttarakhand to incite passions and disrupt peace. He warned that this will not be tolerated in the state.I have feedbac...

Israel's Netanyahu calls Iran "most anti-Semitic regime"

Israeli Prime Minister Benjamin Netanyahu on Thursday called Iran the most antisemitic regime on the planet during an address during a Holocaust memorial in Jerusalem.I am concerned that we have yet to see a unified and resolute stance agai...

Fadnavis govt tapped oppn leaders' phones: Maha home minister

Maharashtra Home Minister Anil Deshmukh on Thursday alleged that the previous Devendra Fadnavis dispensation misused government machinery to tap the phones of opposition leaders, and an inquiry has been ordered in this regard. Talking to r...

Give Feedback