Business Traders work on the floor at the New York Stock Exchange (NYSE) in New York. (Photo: REUTERS/Brendan McDermid) 11 Jul 2019 07:40PM(Updated: 11 Jul 2019 11:16PM) Share this content
REUTERS: The Dow Industrials crossed 27,000 points for the first time and the S&P 500 was near record highs on Thursday (Jul 11), lifted by technology and healthcare stocks and raised bets of an interest rate cut following Fed chief Jerome Powell’s dovish remarks.
Shares of health insurers including Cigna Corp and UnitedHealth Group Inc jumped 13.74 per cent and 4.74 per cent, while drug distributors such as McKesson Corp rose 3.85 per cent after the Trump administration withdrew a rule aimed at eliminating drug rebates from its Medicare health plans.
The healthcare index, which is the worst performing S&P sector this year, rose 0.29 per cent.
Powell, who began his second day of testimony before the Congress, had said that the central bank stood ready to “act as appropriate” to support record U.S. economic growth.
“Is the chief of money going to stave off real weak growth or recession or is it an insurance policy cut move?” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “If latter, the market can continue its rally. If not, we are going to have an earnings problem.”
At 9:54am ET, the Dow Jones Industrial Average was up 135.16 points, or 0.50 per cent, at 26,995.36. The S&P 500 was up 6.97 points, or 0.23 per cent, at 3,000.04, and the Nasdaq Composite was up 12.56 points, or 0.15 per cent, at 8,215.09.
Technology stocks rose 0.30 per cent, providing a major boost to the three main indexes.
Delta Air Lines Inc rose one per cent after reporting a 39.3 per cent rise