US close: Stocks rise as Reddit makes stellar debut

By Sharecast News

Sharecast News | 21 Mar, 2024

Updated : 21:35

23:31 04/11/24

101.73
2.01%2.00

Max: 103.79
Min: 101.00

Volume: 15,738,808
MM 200 : 108.27

US equities finished in positive territory on Thursday, riding on the back of encouraging statements from the Federal Reserve.

Wall Street indices surged to new heights as investor confidence remained robust.

The Dow Jones Industrial Average climbed 0.68% to 39,781.37, while the S&P 500 advanced 0.32% to close at 5,241.53, and the Nasdaq Composite added 0.2% to settle at 16,401.84.

In currency markets, the dollar was last up 0.01% on the dollar to trade at 79.01p, while it slipped 0.01% against both the euro and the yen to last change hands at 92.07 euro cents and JPY 151.61.

“Markets have continued their euphoric reaction to this week’s central bank events, with the FTSE 100 closing in on 7,900 for the first time since May last year,” said IG chief market analyst Chris Beauchamp earlier.

“UK stocks have lagged far behind, but with the Bank of England now on a path to cutting rates we could see the FTSE 350 make further strides as the flow of investor money finally heads to the UK.”

Beauchamp quipped that a ‘no change’ policy meeting rarely produces “quite the excitement” as Wednesday night’s Fed decision.

“While nodding towards stronger than expected, the Fed’s decision to stick to current plans has resulted in yet more record highs for the Dow, S&P 500 and Nasdaq 100.

“Things do seem to be getting a little excessive in markets, especially since the S&P 500 has yet to register a pullback of more than 3% so far this year.”

Composite PMI dips in February, BoE maintains interest rates

In economic news, the S&P Global composite purchasing managers' index (PMI) dipped slightly to 52.2 in March from 52.5 in February.

The decline stemmed from a drop in the services PMI, despite a rise in the manufacturing PMI. However, the overall figure still indicated expansion, albeit at a slower pace.

On the housing front, existing-home sales surged by an impressive 9.5% in February, reaching 4.38 million units.

The figure significantly surpassed expectations, which were set at 3.94 million units.

Across the Atlantic, the Bank of England (BoE) opted to keep interest rates unchanged at its Thursday meeting, in line with widespread expectations.

The Monetary Policy Committee (MPC) voted eight-to-one to maintain the cost of borrowing at 5.25%, a level that had persisted for six months, representing a 16-year high.

Swati Dhingra, an external committee member, voted for a 0.25 percentage point reduction to 5%, highlighting differing views within the MPC.

This decision contrasted with February's meeting, during which two members had voted for a 25 basis point hike.

The BoE had previously implemented 14 consecutive rate hikes in response to soaring inflation, but with inflation now moderating, there was growing anticipation that the MPC could initiate rate cuts later this year.

Reddit rockets on debut, Apple falls on lawsuit news

In equity markets, social media platform Reddit made a splashy debut on the New York Stock Exchange (NYSE), surging 48.35% by the close in one of the most high-profile tech initial public offerings in recent years.

The company offered 22 million shares at $34 each, at the upper end of its price range of $31 to $34 per share, catapulting its valuation to around $6.4bn.

Micron Technology also made waves, soaring 14.13% to reach a record high.

The semiconductor giant exceeded second-quarter expectations and provided strong guidance for the third quarter.

On the downside, shares of iPhone maker Apple slid 4.09% amid legal woes.

The Department of Justice sued the tech giant, alleging antitrust violations that hindered customers from switching to competitors.

Boeing also faced downward pressure, reversing earlier gains to finish 0.04% weaker.

The stock ascended in earlier trading after Korean Air placed a substantial aircraft order worth $13.7bn.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Goldman Sachs Group Inc. (GS) $413.71 4.35%
Home Depot Inc. (HD) $395.46 2.81%
Caterpillar Inc. (CAT) $364.67 2.28%
Amgen Inc. (AMGN) $276.95 1.43%
JP Morgan Chase & Co. (JPM) $199.06 1.39%
Verizon Communications Inc. (VZ) $40.54 1.05%
Microsoft Corp. (MSFT) $429.37 0.97%
Salesforce.Com Inc. (CRM) $308.39 0.75%
Cisco Systems Inc. (CSCO) $49.88 0.67%
Nike Inc. (NKE) $100.82 0.55%