US actions continued their upward trend on Thursday, promoted by strong goal profits (target) and optimism for a possible rate cut by the Federal Reserve in September.
The S&P 500 (^GSPC) rose 0.4%, while the Nasdaq Composite (^Ixic) also increased around 0.4%. The Dow Jones industrial average (ym = f) experienced a modest increase of around 0.1%.
Investor’s trust improved after the president of the Federal Reserve, Jerome Powell, insinuated that a type cut in September is possible, stating that “it could be on the table.” Most operators anticipate a reduction of 25 basic points, although some are now considering a cut of 50 basic points after the Federal Reserve decision to keep the fees stable. Attention has moved to quarterly gains reports, particularly the main technology companies. The impressive goal performance on Wednesday caused an increase of more than 8% in its shares, since the company reported solid profits and income from digital advertising, which is expected to support its investments in AI.
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The next Apple (APL) and Amazon (AMZN) profits reports later that day will be crucial to maintain the positive impulse of technological actions. These reports will also indicate whether the planned benefits of investments in AI will materialize, especially after some disappointing profits from other leading technology companies.
In addition, the weekly data of unemployment applications published on Thursday showed an increase to a maximum of 11 months, preparing the scenario for the Julio Employment Report that is expected for Friday. This report is followed closely in search of cooling signals of the labor market, which is a key factor in the political decisions of the Federal Reserve.
(Tagstotranslate) rebound of the US Stock Market