The NYSE rose in unison. Analysts say that the Federal Reserve’s remarks that it would not hurry to tighten led to a rise in stock prices as major economic indicators such as GDP in the second quarter of the U.S. fell below expectations.
The Dow Jones 30 industrial average closed at 35,084.53, up 153.60 points (0.44%) from the previous day on the New York Stock Exchange (NYSE) on Tuesday.
The Standard & Poor’s 500 rose 18.51 points (0.42 percent) from the battlefield to 4,419.15 while the tech-oriented Nasdaq closed at 14,778.26, up 15.68 points (0.11 percent) from the battlefield.
Investors paid attention to major economic indicators such as GDP.
The Ministry of Commerce announced that GDP in the second quarter of this year rose 6.5 percent year-on-year based on season adjustment. Its first-quarter growth rate was lowered from 6.4 percent to 6.3 percent.
The market prevailed in the second quarter, with growth forecasting 8.4 percent, but fell short of expectations.
The recovery of the job market is also slower than expected. The number of weekly unemployment claims fell from the previous week, but was higher than expected.
The number of unemployment insurance claims for the week ended on the 24th was 400,000 on a seasonally adjusted basis, down 24,000 from the previous week.
The figure is 20,000 more than 380,000 experts estimated by the Wall Street Journal.
It was a rather disappointing result, but it was read as a sign that more time was needed to tighten, and stock prices rose in line with the Fed’s patient move.
In a statement from the FOMC the previous day, the Fed diagnosed that the economy had made progress at the target set by the Fed to reduce the asset purchase program, setting the stage for tapering.
However, the Fed said it would continue to evaluate progress in future meetings, suggesting that it needs time to make “significant additional progress.”
Fed Chairman Jerome Powell also said in a press conference that there is still a way to go before achieving “significant additional progress,” giving the impression that Fed members are not rushing to tighten.
The index rose, but shares of Robinhood, an online trading platform that entered the New York Stock Exchange, fell more than 8% on the first day of trading.
Uber shares fell more than 3 percent after reports said Softbank plans to sell about a third of its shares.
Nicola’s shares fell more than 15 percent on news that founder Trevor Milton was charged with fraud by federal prosecutors.
Facebook shares fell more than 4% in the second half of this year, saying sales are expected to slow, and PayPal shares fell more than 6% on the news that quarterly net profit has decreased.
