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Wall Street hits all-time highs due to expectations of rate cuts and rebound in chip manufacturers

Wall Street hits all-time highs due to expectations of rate cuts and rebound in chip manufacturers

All three major indexes hit record highs after investors took comfort in seeing that the Federal Reserve stuck to its forecast of cutting interest rates three times this year.

Reuters

The main Wall Street indices hit all-time highs this Thursday, March 21, thanks to the rise in chip values ​​following the optimistic forecasts of Micron Technology and after investors are reassured to see that the Federal Reserve He maintained his forecast of cutting interest rates three times this year.

In that context, the Dow Jones Industrial Average rises 320.70 points, or 0.8%, to 39,832.83 units; Meanwhile he S&P 500 gains 30.19 points, or 0.6%, to 5,254.81 units. Meanwhile, the Nasdaq Composite added 89.24 points, or 0.6%, to 16,458.65 units.

The three main indices hit all-time highs during this roundwhile all 11 major S&P 500 sectors also rose, with consumer discretionary leading the gains, up 0.7%.

Wall Street hits all-time highs after Micron surges due to announcement of surprise quarterly profit

The chip maker Micron Technology shoots 16% to an all-time high after publishing a surprise quarterly profit and forecast third-quarter revenue above estimates.

Intel and Nvidia They advance more than 1.5%, while the Philadelphia Semiconductor index climbs 2.7%.

ManzanaHowever, it lost 3.4% after learning that the Department of Justice is preparing to sue the company this Thursday for alleged violation of antitrust laws.

Wall Street hopeful after Fed maintains plan to cut rates three times this year

US stock indices had closed higher on Wednesday after the Fed to keep borrowing costs unchanged and They will indicate that they still expect to reduce rates by three quarters of a percentage point by the end of 2024.

Inflation reports “they haven’t really changed the overall story, which is that of inflation gradually coming down on a sometimes bumpy road towards 2%”said the Fed chairman, Jerome Powellin a press conference after the meeting of monetary politics.

CME’s FedWatch tool showed that the market now values ​​at a 70% chance of Fed rate cut in Junecompared to the 56% estimated at the beginning of the week.

Source: Ambito

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