Reuters.- US stocks in Wall Street closed higher this afternoon, fueled by strong earnings and company outlooks and economic figures that showed the US economy was above its pre-pandemic level.
The American economy grew solidly in the second quarter and the level of Gross Domestic Product was higher than before the pandemic, even though the rate of GDP growth was slower than economists expected.
Among the bullish corporate reports in the eyes of Wall Street, Ford Motor Co raised its earnings forecast for the yearwhile KFC owner Yum Brands Inc beat expectations for quarterly sales.
The Below-forecast GDP levels may be easing some investors’ concerns that the Federal Reserve’s “easy money policy” may soon fade, said Peter Tuz, chairman of Chase Investment Counsel.
Wall Street stocks were boosted in the middle of the week after the Fed’s Powell said it was still now was not the time to start withdrawing his huge monetary stimulus.
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Sensitive groups led movements on Wall Street
Economically sensitive groups, such as finance, commodities and energy, led sector gains in the S&P.
The S&P 500 real estate sector hit intraday record. The Fed said there was “very little support” for cutting the $ 40 billion in monthly purchases of mortgage-backed securities “before” the $ 80 billion in Treasuries.
Unofficially, the Industrial Average Dow Jones rose 151.49 points, or 0.43%, to 35,082.42 units, while the S&P 500 gained 18.31 points, or 0.42%, to 4,418.95 units. The Nasdaq added 15.67 points, or 0.11%, at 14,778.26 units.
On the downside, the stocks of Facebook Inc fell because the company warned that revenue growth would “slow significantly” following a recent update to Apple Inc’s iOS operating system, which would affect the social media giant’s ability to target advertising.
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