The DOW Jones Industrial index increased by 0.25 percent At the opening of the stock exchange at New York Wall Street on Wednesday. Here, to the historic peak of the oldest Wall Street indicator, there is not much lack, but this was the S&P 500 index on Wednesday, which gained 0.26 percent, and later to be at a historically the highest level, which from now is 6480 points.
The historical record also included the Nasdaq Composite index, growing at the beginning of the day by 0.38 percent. He appointed a new maximum of 21803 points on Wednesday.
Warner Bros, which went up by more than 7 percent, is responsible for this growth. and AMD processors manufacturer (+5.1 percent). The largest technology companies gain, among others Tesla shares (+1.1 percent), Amazon (+1 percent) and Apple (+0.8 percent)
However, while Warner Bros makes up for the declines from the last week, AMD is growing this year almost without interruption. From January he has already gained 53 percent. Tesla, however, still has this year's decreases to catch up, although it only loses 14 percent. Last week she grew by almost 9 percent, Which increased the astronomical property of the richest man in the world, or Elon Musk. According to the billionaire index, Bloomberg is already $ 379 billion.
Feet down
Why, however, American actions record record levels? There are several reasons for this, including the customs protection of the domestic market by Donald Trump, but the main motive is currently interest rates.
Data on inflation in the US, which on Tuesday showed that the consumer price indicator grew less in July than forecast, indicate that President Donald Trump's import duties have not yet affected consumer prices.
This helped Wall Street to reach new peaks, supported by the growing certainty that the federal reserve will reduce interest rates next month. The Fed Fed Contract Market in Chicago values that September reduction by 0.25 percentage points will be with a probability of 99.9 percent. Only 0.01 percent The market risk betting on a lack of inheritance. There is rarely such certainty.
“The fact that the CPI indicator was essentially consistent with expectations was accepted with relief, which translated into increases in shares and strengthening credit spreads, because investors were increasingly convinced of another reduction of interest rates” – wrote Deutsche Bank analysts cited by Reuters.
Trump's optimism on the market was also increased by Trump's signing of a stopping regulation for another 90 days of downloading three -digit duties from Chinese imports.
