Business A street sign for Wall Street outside the New York Stock Exchange (NYSE) in Manhattan, New York City. (REUTERS/Andrew Kelly/File Photo/File Photo) 12 Jul 2019 05:25AM(Updated: 12 Jul 2019 05:30AM) Share this content
NEW YORK: The Dow surged above 27,000 points for the first time on Thursday (Jul 11), closing at a fresh record on optimism over an expected Federal Reserve interest rate cut later this month.
Shrugging off trade war worries, the blue-chip Dow Jones Industrial Average gained 227.88 points (0.85 per cent) to hit 27,088.08.
The broad-based S&P 500 ended up 6.84 points (0.23 per cent) at 2,999.91, also a record – though below the 3,000-point mark breached earlier this week – while the tech-rich Nasdaq Composite Index slipped 6.49 points (0.08 per cent) to 8,196.04.
The records – which were touted on Twitter by US President Donald Trump – came as Federal Reserve Chair Jerome Powell completed a second day of congressional testimony at which he emphasised economic risks in remarks that were widely interpreted as signaling a likely interest rate cut.
Trump, who has repeatedly criticised Powell on monetary policy, extolled the latest landmark on Twitter, saying “Dow just hit 27,000 for the first time EVER!”
Dow just hit 27,000 for first time EVER!
— Donald J. Trump (@realDonaldTrump) July 11, 2019
But the new peak came amid fresh signs of trade policy discord that have troubled investors over the last year.
Trump, also on Twitter, accused China of backsliding on a recent pledge to buy more US farm exports. “Hopefully they will start soon!”
Health insurer UnitedHealth Group surged 5.5 per cent and CVS Health jumped 4.7 per cent after the Trump administration spiked a plan to curb drug rebates offered by pharma