2024-01-25 18:48:35
In total, the data raised hopes of interest cuts in the US this semester, as well as a smooth landing for the economy
New York stock exchanges closed higher, after inflation and Gross Domestic Product (GDP) readings contributed to expectations of a soft landing in the US, although this scenario is not yet guaranteed. The corporate earnings season continues to take its toll, causing this Thursday, the 25th, a jump in the shares of American Airlines and IBM, and a 12% drop in Tesla.
At the end of the afternoon in New York, the Dow Jones index closed with a gain of 0.64%, at 38,049.13 points; the S&P 500 rose 0.53%, to 4894.16 points; and the Nasdaq, 0.18%, at 15,510.50 points.
The stock markets opened higher, in the wake of the greater than expected increase in the American GDP and the deceleration of the consumer spending price index (PCE, in its acronym in English) – the Federal Reserve’s (Fed) preferred inflation indicator. The core PCE increased by 2% on the same basis of comparison – in line with the target of Fed officials. In total, the data fueled hopes of interest rate cuts in the US this semester, as well as a smooth landing for the American economy.
“Fears of a recession are quickly fading,” noted Navellier CEO Louis Navellier in a note to clients “Stocks are up across all sectors.”
Tesla shares plummeted 12.13% after publishing its quarterly numbers yesterday. The electric vehicle maker reported better-than-expected fourth-quarter profit, but expectations that frustrated investors. IBM (+9.49%) and American Airlines (+10.27%) jumped in the wake of increased profits and revenue.
Boeing fell 5.72%, with news that the US Federal Aviation Administration (FAA) limited production of the company’s 737 aircraft, following a series of technical problems. The regulatory body authorized the resumption of flights for airlines that complete inspections of their Boeing models.
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