US markets ended the trading session on Tuesday with positive results after technology stocks managed to recover from their biggest two-day drop since December. The largest US index Dow Jones Industrial Average recorded an increase of 90 points to 21328.47 points, reaching a new intraday record, the largest contribution came from the companies 3M and Goldman Sachs. The second largest S&P 500 index surged in value from 0.5% to 2440.35 points, leading were IT and materials.
Shares of Apple, Alphabet and Tesla appreciated, pushing the tech heavy Nasdaq 0.7% upwards. John Treynor by People’s United Bank said it wants to weigh dramatically on the technology sector, but still wants to participate in it, as can be seen growth in top companies from this segment. Technology stocks are gaining more than expected this year, such as information-technology sector of the S & P has risen by as much as 17.6%. In comparison Health, which is the second best-performing sector, has reported a growth of 12.1%.
Stock markets in Europe closed in green territory yesterday as investors calmed down from the current political development in the UK and is positioned before the upcoming meeting of the Fed. Technology stocks in Europe were among the best performing sectors yesterday, recording a growth of 1.15%. This growth was influenced by a surge of Dialog Semiconductor, which although traded on the bottom on Monday reported a rise in its shares by 4.7%.
At the top technology sector joined and financial services whose shares rose nearly 1.5%. One of the main European indices DAX30 rose by 130 points to 12,764.98, while the value of the British FTSE 100 index fell by 0.15% or 11.43 points to 7500.44 points.
Eyes of market participants will be focused on the Fed meeting, and that the basic interest rate in the US will be increased or not. At this meeting will understand their decision on interest rates and other policy measures, along with that will receive and comment on the economic conditions that influenced the decision.
Prevailing expectations the interest rate to be raised by 0.25 basis points to 1.25%, which in turn is highly likely to cause high volatility in currency pairs, incorporating US dollar. Earlier in 15:30 will be published data on inflation and retail sales in the US, it is estimated to be relatively unchanged.
Oil prices fell during a volatile trading session after Saudi Arabia said it would limit its exports of oil, but OPEC report indicating increases in production overshadowed statement. The light crude oil ended the session with a decline of 11 cents to 45.93 dollars a barrel, while futures varieties Brent oil traded around 48.65 dollars per barrel, down from 13 cents.
Initially prices rose sharply during the morning trading session to 46.54 dollars per barrel when it became clear that Saudi Arabia will reduce its production by 300,000 barrels per day to Asia. However, futures quickly lost its gains after OPEC monthly report showed growth in oil production by 336,000 bpd to 32.14 million bpd, the largest contribution to this are Nigeria and Libya.
Gold was trading with mixed results Tuesday as most investors decided to stand aside ahead of the Federal Reserve, which should give more signs of the monetary policy of the central bank. The slower pace of increase in interest rates than expected have weighed on the dollar, making gold cheaper for foreign investors outside the US. Spot gold rose 0.21% to 1267.31 dollars an ounce, having previously reached a low of 1261.30 dollars an ounce, which is the lowest level since June 2 onwards.