Dow hits news record thanks to the Fed’s dovish comments

Dow hits news record thanks to the Fed’s dovish comments

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US stocks ended the session with strong gains, with the blue chip index Dow Jones reaching a new intraday record after the comments of the Chairman of the US Federal Reserve Janet Yellen regarding monetary policy.

Dow Jones rose by 122 points (0.57%) to 21,531 points in the session. During the trade, the index rose by 137 points. The largest contribution to the growth of the indicator had shares of Du Pont, which rose 2.75 percent, and Microsoft, which added 1.66%.

JPMorgan Chase was the only loser which saw a decrease of 0.34 percent.

S & P 500 rose by 0.73 percent to 2443 points. Among sectors in the index, technology stocks recorded the strongest growth – an average of 1.31%, followed by property with 1.3 percent and companies producing basic materials with 1.14 percent.

All sectors in the index ended in the green territory.

Nasdaq increased by 1.1% to 6261 points.

In comments to Congress Yellen confirmed that the Fed will start to shrink a record balance big this year.

“We see that there is a positive reaction to her comments,” says Jeff Kravets, a regional investment strategist at US Bank. “After months of hard talking in terms of interest rates seems Janet Yellen finally softened,” adds Jim Iuorio of TJM Institutional Services.

This, according Luorio eliminates one of the major concerns of the markets – that the Fed will raise interest rates before the political landscape is completely ready.

Oil prices rose in yesterday’s session after government data confirmed a sharp fall in stocks of crude oil in the US for the second consecutive week.

US light crude oil for August delivery rose 45 cents (1%) to 45.49 dollars a barrel in New York. This is lower than the level of 46.17 dollars on which futures are traded before the release of the data, but remains the highest since July 3.

The September contracts of Brent crude rose 22 cents (0.5%) to 47.74 dollars per barrel.

The US Energy Information Administration reported that crude oil stocks in the United States decreased by 7.6 million. Barrels for the week ended July 7. It was expected to decrease from 2.6 million barrels.

In the previous week it was reported a decline in stocks of 6.3 million barrels.

The price of gold grew for a third session. Futures of the precious metal for delivery in August rose 4.4 dollars (0.4%) to 1 219.10 dollars an ounce.

 

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I am an independent trader currency and commodity with about eight years of experience. I love the financial world because it is like one big puzzle and I hope we help each other out to solve the puzzle to help us realize our dreams. I received my BBA in Accounting (With Honors) - from The University of Texas - San Antonio. Achievements: Beta Alpha Psi National Accounting Honors Fraternity member, Leadership Challenge Participant, Dean's List. I have passed the Series 63, 22, Texas Real Estate exam, and the DRI Business Continuity exam.

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