US stocks are mixed after Fed comments on growth; Alphabet leaps after profits | Photo credit: AP
U.S. stock indexes had mixed results on Wednesday after the Federal Reserve said it would keep interest rates stable near zero and retain its full range of tools to support economic recovery during the pandemic.
On the data front, the US goods trade deficit rose 3.5% in June to a record $ 91.2 billion. The Dow Jones was up 1.3% to 34,870 while the S&P was up 1.13%. The NASDAQ rose 0.98%.
Alphabet Inc. gave both indices the biggest boost after reporting above-estimated sales. Facebook Inc has slumped in post-trade after saying revenue growth will slow this year. Pfizer shares rose 3.2% after the company reported higher-than-expected profits and increased its 2021 sales forecast for the Covid vaccine.
The yield on 10-year treasury bills fell 1 basis point to 1.23%
European stocks rose on Wednesday as encouraging results from UK bank Barclays and luxury group Kering helped investors overcome concerns over China’s regulatory crackdown that has kept markets on edge this week. Dax was up 0.33% while CAC was up 1.18%. The FTSE rose 0.29%
The tech sector was supported by a 3.8% rise in Capgemini after the French IT consulting and services provider raised its outlook for 2021.
Other airlines, including easyJet and British Airways operator IAG, have also taken advantage of Britain’s decision to exempt double-vaccinated visitors from the European Union and the United States from quarantine.
Asian stocks rose early Thursday after the Federal Reserve moved closer to a substantial stimulus package, but said more economic progress was needed and as traders assess China’s efforts to restore calm there. Marlet. ASX 200 (Australia) was up 0.44% while Kospi was up 0.43%. Nikkei rose 0.53%
Markets are eagerly awaiting to see if stocks rebound from the steep losses caused by China’s crackdown on private companies.
West Texas Intermediate crude rose 1% to $ 72.38 a barrel