The New York stock exchanges closed in the green on Thursday, despite a weak start to the trading day. This positive close was influenced by various factors, including important economic data and hopes for an imminent interest rate cut by the US Federal Reserve.
Background and Influencing Factors
Economic Data: The published economic data had a significant impact on market development. While new unemployment claims remained consistent, the sentiment indices in the New York and Philadelphia regions painted a mixed picture. It was positively noted that retail sales increased slightly, where stagnation had been expected. However, industrial production remained unchanged, although a small increase was anticipated.
Hopes for Interest Rate Cuts: Hopes that the Fed might lower interest rates were reinforced by the economic data. This expectation was also reflected in declining yields in the bond market, indicating a cautiously optimistic mood among investors.
Stock Market Development: The Dow Jones and S&P 500 started the day with slight losses but managed to recover during the day and ultimately closed in the green. The Nasdaq 100, influenced by technology values, also benefitted and ended the trading day in positive territory.
Individual Stocks and Sectors
Technology Stocks: Technology stocks like Nvidia and Netflix saw notable gains in previous days, underscoring the positive market sentiment in the technology sector.
Retailers: Walmart expressed concerns about potential price increases due to tariff burdens and a possible economic slowdown, leading to a decline in its stock price.
Other Stocks: Companies like Cisco and Birkenstock experienced stock price gains, while UnitedHealth faced pressure.
Outlook
The positive development of the New York stock exchanges indicates that investors continue to hope for an interest rate cut and assess the economic data positively. The technology sector remains a strong market driver, while retail is facing challenges.