NEW YORK – US stocks rose in Wednesday's shortened trading session, with the S&P 500 and Dow Jones indices closing at record highs. Investors bought shares across sectors, taking advantage of the favourable mood that appears on the markets before the end of the year. For example, there was interest in Nike shares, whose growth was also boosted by the news that Apple CEO Tim Cook had bought $3 million (over CZK 61 million) worth of these shares. The dollar strengthened slightly against major currencies on foreign exchange markets.m.
The Dow Jones index, which includes shares of thirty leading American companies, rose by 0.60 per cent to a record 48,731.16 points. The broader S&P 500 index added 0.32 per cent and closed the day at 6,932.05 points, which is also a record high. The Nasdaq Composite index, which includes many companies from the advanced technology sector, gained 0.22 per cent to 23,613.31 points.
Major stock indices in the US have been strengthening in recent days, partly due to a recovery in artificial intelligence (AI) stocks following last week's sell-off. The sell-off was driven by concerns about overvalued prices and high capital expenditure, which are reducing companies' profits. However, recent statistics have shown that the US economy remains resilient and that the market still expects a reduction in base interest rates next year.
The base interest rate in the US is now in the range of 3.50 to 3.75 per cent, to which the US Federal Reserve (Fed) lowered it this month. Analysts predict that the Fed could lower the base interest rate by a total of half a percentage point next year, but most do not expect a reduction in January, as shown by the CME's FedWatch tool. Trading volumes were low today due to the Christmas holidays. Today's trading ended three hours earlier than usual, and the markets will be closed entirely on Thursday. Trading will resume in full on Friday, 26 December.
„Earnings are performing well, volumes are low, but the themes remain the same – artificial intelligence is doing very well, there is talk of positive factors, new OpenAI and Meta models that will spark debate,“ said chief analyst Tim Ghriskey of Ingalls & Snyder in New York. „The Fed is unlikely to cut rates again, at least not for some time. Who knows what will happen when May comes and we have a new Fed chief. But the likelihood of a January cut is very low,“ he said of interest rate developments.
The dollar strengthened slightly on foreign exchange markets. Its index, which expresses the value of the dollar against a basket of six major world currencies, was close to 97.9860 points shortly after 7 p.m. CET, showing an increase of less than 0.1 per cent. The euro lost more than 0.1 per cent against the dollar to USD 1.1777, while the dollar was close to JPY 155.98 against the Japanese yen, down approximately 0.1 per cent. The euro lost almost 0.3 per cent against the yen to JPY 183.61.
ČTK/ceskenoviny.cz/gnews.cz-jav
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