New York, (Reuters) .- US actions closed upwards this Friday, and Nasdaq reached a closing record for the second consecutive day, driven by the progress of technological titles such as Apple and for optimism around possible interest rate cuts this year.
The three main indexes also registered weekly profits.
Apple’s actions rose, extending their recent positive trend. At the beginning of this week, US President Donald Trump announced that the company will invest 100 billion additional dollars in the United States, raising its total commitment to 600 billion dollars for the next four years.
The technological index of the S&P 500 also advanced. Among the companies that supported their performance was Gilead Sciences, whose actions rose after his financial forecast for the whole year. With results of more than 450 companies of the S&P 500, the estimated growth of profits for the second quarter was on Friday at 13.2%, compared to 5.8% recorded on July 1, according to LSE data.
Weaker economic data in recent dates have reinforced the expectations of feature cuts, while investors evaluate Trump’s interim candidate for the Board of Governors of the Federal Reserve.
You may be interested:
S&P 500 and Nasdaq, in historical maximums for optimism on soon trade agreement
The president nominated Stephen Miran on Thursday afternoon, president of the Council of Economic Advisors, to temporarily occupy a seat in the Fed, after Adriana Kugler’s abrupt departure last week. Trump also continues to refine his list of candidates to replace the president of the FED, Jerome Powell, whose mandate ends on May 15.
They look, frequently aligned with Trump, has suggested in the past that Powell “acted too late” to lower the rates.
According to the CME Group Fedwatch tool, the operators now estimate 90% the probability that the first cut occurs next month, with at least two cuts projected before the end of the year.
“There are investors who think that if the Fed is going to cut rates, the slogan is: do not fight against the Fed when the rates are going down,” said Rick Mridler, a partner of Cherry Lane Investments in New Vernon, New Jersey.
“The other factor is the tariffs, and their outcome is still uncertain. They still are negotiated, and I do not think that many want to bet against knowing that some of the tariff decisions that now seem problematic now could be reverted.”
Lee: S&P 500 and Nasdaq mark historical maximums
According to preliminary data, the S&P 500 rose 0.78% to 6,389.75 units, the Nasdaq Composite won 0.98% to 21,451,42 units and the Dow Jones advanced 0.50%, to be located at 44,188.33 units.
The new tallest Trump tariffs to imports from dozens of countries entered into force this week.
Investors also closely followed the commercial relations between the United States and India, after New Delhi canceled new purchases of American weapons and aircraft after the increase in Trump tariffs for Indian exports up to 50% this week.
Expedia shares rose after the company raised its annual forecast of gross reserves and income growth.
Follow the information of the economy and finance in our specialized section
