The reference rates of the New York Stock Exchange closed positively, with the Dow Jones in Historical Máxima this Fridayafter the president of the Federal Reserve (Fed), Jerome Powellindicate that the American Central Bank was willing to cut interest rates, during his speech in the Jackson Hole symposium.
In this context, the Dow Jones index of industrialists rose 1.89% to 45,631.74 points; The S&P500 won 1.51% to 6,466.48 points and Nasdaq Composite showed 1.88% to 21,496.54 points.
Powell suggests that a rate cut is coming
In his speech at the Jackson Hole symposium in Wyoming, Powell indicated that the American economy is in a situation insecure enough for the Central Bank to have to cut the interest rates.
“The downward risks for employment are increasing,” Powell said in his comments prepared for his inaugural discourse in the annual symposium, while the possibility that the tariffs of the Trump administration Have only a temporal effect on inflation is “reasonable.”
“With monetary policy in restrictive territory, the reference perspectives and the changing balance of risks could justify an adjustment of our political position,” he emphasized.
His speech occurred in the midst of growing doubts about whether the Fed has enough impulse to cut the types in September. However, the market seems to discount two more cuts for the end of the year.
“This is a statement of the type ‘we will probably cut in September’ as explicit as you can expect from the president of the Fed”said analysts of Vital Knowledge in a note.
“However, although Powell is more moderate than in his last dissertation in July, the current one is not an extremely moderate speech in absolute terms. He is still concerned about inflation and warns that tariff has decreased) “.
UBS raises its objectives of the S&P 500
The second quarter results season has practically finished, and UBS Investment Bank raised its price objectives for the S&P 500, after mentioning the solid results of the second quarter and the improvement of economic conditionsto 6,600 and its objective for June 2026 to 6,800, to close the date to 6,466.48 points.
The second -quarter results season was particularly solid, with a growth of 8% in the profits of the S&P 500, which exceeded the initial expectation of 5% of UBS. The technological actions of the “7 magnificent” registered a 30% growth and improved the 20% bank forecast. The median companies exceeded estimates at 4.5 percentage points, higher than the typical improvement of 3.5 percentage points.
UBS said that the forecasts for the third quarter were also positive, which suggests that there will not be a deceleration in earnings growth despite the fact that products subject to tariffs are already in stores.
The outstanding actions of Wall Street
Platforms goal It grew 2% after signing an agreement of US $ 10,000 million with Google(+3%), owned by Alphabet, according to The Information. This agreement will allow the Facebook owner to use servers, storage and other Google Cloud services over the next six years.
Meta, together with the so -called Ia Hall Street hyperscalars, it is rushed to develop a superintelligent AI in the growing requests of investors to obtain a yield of the hundreds of billions of dollars invested in the development of AI.
Nvidia Corporation It rose 1.6% after a report indicating that the chips designer had asked some component suppliers to stop the production of their H20 artificial intelligence chip, specific to China, before a greater scrutiny about the chip by Beijing.
The actions of Workday They dropped 3.3% after the human resources software company kept its subscription income forecast, except for a small impulse after the acquisition of Paradox.
BJS WHOLESALE CLUB They sank 8% despite the fact that the wholesale club operator raised their earning forecast for the whole year, after reaching the milestone of 8 million members.
Intuit He skided 5% after the software company forecast income growth for the first quarter below expectations, affected by the slow performance of its Mailchimp marketing platform.
Zoom Video Communications It climbed 12.4% after the communications company presented solid results for the second quarter and increased its income prognosis for the whole year, after showing a continuous expansion of its business business.
Inspirate Technologies It descended 6.8% after the company announced that it received the approval of US patent for its central art500 technology, an low flow extracorporeal oxygenation system. The patent, which includes 16 requirements considered novel, provides protection for the underlying technology of the Art500 system up to at least 2043.
The device is designed to supply extracorporeal oxygenation to low flow rates while maintaining patient safety and treatment efficiency.
Source: Ambito
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