Dow Jones closes at 477.75 as bond yields decline, with the Personal Consumption Expenditures index watching

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The New York Stock Exchange's Dow Jones closed up more than 400 points on Wednesday (March 27), while the S&P 500 closed at a new high, supported by a drop in US bond yields. Meanwhile, investors are monitoring the release of the Personal Consumption Expenditures (PCE) price index and comments from Federal Reserve officials. To find clear signals about the direction of the Fed interest rate

The Dow Jones Industrial Average closed at 39,760.08 points, up 477.75 points, or +1.22%, the S&P 500 index closed at 5,248.49 points, up 44.91 points, or +0.86%, and the Nasdaq index closed at 16,399.52 points, up 83.82 points, or +0.51%. %.

The 10-year US government bond yield fell to 4.19% last night, which was a factor supporting a broad-based rebound in stock prices, and all 11 stocks counted in the S&P 500 index closed in positive territory, led by the stock index. The index of the sector most sensitive to interest rates rose by 2.75%, followed by the real estate sector index, which rose by 2.42%, then the industrial sector index, which rose by 1.6%.

Analysts at UBS Wealth Management said a gradual slowdown or soft landing is expected for the US economy. He hopes the Fed will start cutting interest rates this year. This remains a positive factor for the trading atmosphere in the market.

The latest FedWatch tool from CME Group indicates that investors are giving 70.4% of their weight to expecting the Fed to cut interest rates for the first time at its June meeting. This is up from 59.2% last week.

Shares of Merck & Co, a major US pharmaceutical company, rose 4.96%, the strongest gain of any Dow Jones index. After the US Food and Drug Administration (FDA) approved Merck's drug “Winrevair” for use in treating pulmonary arterial hypertension (PAH).

Trump Media and Technology Group (TMTG) shares rose 14.19%, continuing their rise after the stock was listed on the Nasdaq stock exchange under the symbol DJT on Tuesday.

Shares of GameStop, the popular American video game publisher, fell more than 15% after the company revealed lower revenues in the fourth quarter of 2023 and announced layoffs to cut costs.

Investors will be closely monitoring the release of the February personal consumption expenditures index in the US on Friday. The PCE index is the inflation data that the Fed cares about. Because it can detect changes in consumer behavior and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).

Investors are also watching comments from Federal Reserve officials. Including Christopher Waller, a member of the Federal Reserve Board of Governors who will speak at the New York State Economic Association today.

The New York Stock Exchange will close trading in March. The first quarter of 2024 is this week, as stock market trading today (March 28) is the last day of this month. Before closing on Friday (March 29) for Good Friday.

Source: InfoQuest News Agency