American Stock Market Reaches New Highs
Despite touching a new all-time high during the session, the American index Dow Jones Industrial Average closed just shy of a record. Investors shrugged off data showing price increases in June, buoyed by strong start to earnings season and expectations of a Federal Reserve interest rate cut in September.
Intel and IBM Stocks Lead the Way
It was the stocks of Intel and IBM that made the biggest contribution to the index’s growth. Intel’s innovative product line and IBM’s robust services sector helped push the index to new heights, leaving investors optimistic about the future of the market.
Record-breaking day on the stock market
On May 13th, the stock market reached a record high of 40,257.24 points. This marked a significant milestone in the market’s history.
Contributors to the market growth
Two major players in this growth were Intel and IBM, whose stocks increased by over 3% and 2.6% respectively during the session. These two stocks alone accounted for nearly 40 points of the Dow’s increase. Other significant contributors to the market growth were Amgen, Home Depot, and Cisco.
Other market indices
Alongside the Dow, the broader S&P 500 index also saw a rise of 0.55% to 5615.35 points by the end of the session. The Nasdaq technology index also increased by 0.63% to 18,398.45 points.
Wall Street banks kick off earnings season
The major Wall Street banks have started the earnings season with strong performances, setting a positive tone for the market in the upcoming weeks.
JPMorgan Chase Reports Strong Quarterly Results
JPMorgan Chase, the largest bank in the U.S., reported quarterly results that exceeded expectations. However, this was overshadowed by weaker net interest income for the quarter and provisions for credit losses.
Wells Fargo & Company Lowers Revenue Expectations
At the same time, Wells Fargo & Company lowered its expectations for interest income, according to Investing.com. This led to a decrease in the stock price by over 5%. Citigroup Inc’s shares also dropped by almost 1% following their financial report.
Investors are eagerly awaiting results from a diverse range of companies, which could potentially expand the rally.
American Stocks Outlook Beyond the Dominant Tech Sector
If analysts’ predictions are accurate, the annual growth rate of stock earnings for this quarter is expected to be the highest since the fourth quarter of 2021, according to Bernstein analysts.
Market participants are now assessing an 86% chance of a decrease in the Federal Reserve’s key interest rate in September, an increase from the 72% probability observed a week earlier.
Oil futures prices settled slightly lower on Friday. Futures were trading at a slight decline, indicating potential fluctuations in the energy sector in the coming weeks.
Oil Prices Experience Volatility
The price of Brent crude oil, traded in London, dropped by 37 cents to $85.03 per barrel. Meanwhile, futures for American crude oil West Texas Intermediate fell by 41 cents, or 0.5%, to $82.21 per barrel.
Weekly Changes in Oil Prices
For the week, Brent futures fell by more than 1.7% after four weeks of increases. WTI futures reported a 1.1% weekly decline.
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