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U.S. stock markets closed sharply higher as market participants digested top Fed officials comments. The yield on U.S. government bonds dropped slightly. Decline in oil prices also boosted investors’ confidence. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.4% or 435.98 points to close at 31,581.28. Notably, 28 components of the 30-stock index ended in positive territory while 2 in red. The major gainer of the blue-chip index was 3M Co. (MMM - Free Report) , shares of which surged 3.4%. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 11,791.90, rallying 2.1% or 246.99 points due to strong performance of large-cap technology stocks. The tech-laden index terminated seven consecutive days of losses for the first time since 2016.
The S&P 500 advanced 1.8% to end at 3,979.87. Ten out of the 11 broad sectors of the benchmark index closed in positive zone while one in red. The Consumer Discretionary Select Sector SPDR (XLY) and the Utilities Select Sector SPDR (XLU) gained 3.1% each while the Energy Select Sector SPDR (XLE) fell 1.2%.
The fear-gauge CBOE Volatility Index (VIX) was down 8.4% to 24.64. A total of 10.21 billion shares were traded Wednesday, lower than the last 20-session average of 10.43 billion. Advancers outnumbered decliners on the NYSE by a 3.07-to-1 ratio. On Nasdaq, a 2.60-to-1 ratio favored advancing issues.
Comments of Top Fed Officials
Federal Reserve Vice Chair Lael Brainard emphasized the urgency of fighting against inflation as it is hurting lower-income Americans the most. Brainard said “We are in this for as long as it takes to get inflation down.” The Vice Chair’s comments clearly indicated that aggressive rate hike will continue and higher interest rate regime will stay for a longer time.
However, Brainard also acknowledged that policymakers will be data dependent and will remain concerned of overdoing tightening. She said “At some point in the tightening cycle, the risks will become more two-sided. The rapidity of the tightening cycle and its global nature, as well as the uncertainty around the pace at which the effects of tighter financial conditions are working their way through aggregate demand, create risks associated with overtightening.”
More Catalysts
Market participants reacted positively as the yield on the benchmark 10-Year U.S. Treasury Note dipped 5 basis points to 3.294%. The yields on the short-term 2-Year and long-term 30-Year Notes also declined.
Crude oil prices have also declined yesterday. The U.S. benchmark- West Texas Intermediate crude fell 3.7% to $82.93 a barrel, the lowest level since Jan 24. Global benchmark - Brent crude fell 3.4% to $88.92 a barrel, its lowest level since Feb 3.
Moreover, the British Pound fell to $1.14 against the U.S. dollar, its lowest level since 1985. All these data indicated that inflation may decline going forward.
Economic Data
U.S. Trade deficit dropped to $70.6 billion in July compared with the consensus estimate of $71.1 billion. Trade deficit in June was revised upward to $80.9 billion from $79.6 billion reported earlier. July exports were $259.3 billion, $0.5 billion more than June exports. July imports were $329.9 billion, $9.7 billion less than June imports.
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Stock Market News for Sep 8, 2022
U.S. stock markets closed sharply higher as market participants digested top Fed officials comments. The yield on U.S. government bonds dropped slightly. Decline in oil prices also boosted investors’ confidence. All the three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) climbed 1.4% or 435.98 points to close at 31,581.28. Notably, 28 components of the 30-stock index ended in positive territory while 2 in red. The major gainer of the blue-chip index was 3M Co. (MMM - Free Report) , shares of which surged 3.4%. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 11,791.90, rallying 2.1% or 246.99 points due to strong performance of large-cap technology stocks. The tech-laden index terminated seven consecutive days of losses for the first time since 2016.
The S&P 500 advanced 1.8% to end at 3,979.87. Ten out of the 11 broad sectors of the benchmark index closed in positive zone while one in red. The Consumer Discretionary Select Sector SPDR (XLY) and the Utilities Select Sector SPDR (XLU) gained 3.1% each while the Energy Select Sector SPDR (XLE) fell 1.2%.
The fear-gauge CBOE Volatility Index (VIX) was down 8.4% to 24.64. A total of 10.21 billion shares were traded Wednesday, lower than the last 20-session average of 10.43 billion. Advancers outnumbered decliners on the NYSE by a 3.07-to-1 ratio. On Nasdaq, a 2.60-to-1 ratio favored advancing issues.
Comments of Top Fed Officials
Federal Reserve Vice Chair Lael Brainard emphasized the urgency of fighting against inflation as it is hurting lower-income Americans the most. Brainard said “We are in this for as long as it takes to get inflation down.” The Vice Chair’s comments clearly indicated that aggressive rate hike will continue and higher interest rate regime will stay for a longer time.
However, Brainard also acknowledged that policymakers will be data dependent and will remain concerned of overdoing tightening. She said “At some point in the tightening cycle, the risks will become more two-sided. The rapidity of the tightening cycle and its global nature, as well as the uncertainty around the pace at which the effects of tighter financial conditions are working their way through aggregate demand, create risks associated with overtightening.”
More Catalysts
Market participants reacted positively as the yield on the benchmark 10-Year U.S. Treasury Note dipped 5 basis points to 3.294%. The yields on the short-term 2-Year and long-term 30-Year Notes also declined.
Crude oil prices have also declined yesterday. The U.S. benchmark- West Texas Intermediate crude fell 3.7% to $82.93 a barrel, the lowest level since Jan 24. Global benchmark - Brent crude fell 3.4% to $88.92 a barrel, its lowest level since Feb 3.
Moreover, the British Pound fell to $1.14 against the U.S. dollar, its lowest level since 1985. All these data indicated that inflation may decline going forward.
Economic Data
U.S. Trade deficit dropped to $70.6 billion in July compared with the consensus estimate of $71.1 billion. Trade deficit in June was revised upward to $80.9 billion from $79.6 billion reported earlier. July exports were $259.3 billion, $0.5 billion more than June exports. July imports were $329.9 billion, $9.7 billion less than June imports.