US stocks rose on Thursday, brushing off Microsoft’s latest bleak earnings forecast, as well as comments from Federal Reserve Deputy Chairman Liel Brainard suggesting the central bank may continue to raise aggressive interest rates until September.
The S&P 500 rose 1.3 percent by mid-afternoon in New York, after opening the day lower. The high-tech Nasdaq Composite rose 2.3%. Both indices closed the session on Wednesday down 0.7%.
Microsoft early Thursday Cut its quarterly revenue Forecasts against the background of uncomfortable exchange rates. The dollar has risen sharply since the beginning of the year, reducing the value of revenue earned by U.S. overseas companies translating back into the U.S. currency.
Europe’s regional Stoxx 600 index rose 0.6%, even as data released earlier today showed eurozone producer prices climbed at an annual rate of 37.2% in April, from 36.9% a month earlier, at the latest sign of sustained inflationary pressures. A separate inflation report this week revealed that the annual growth of consumer prices in the bloc exceeded expectations and reached 8.1% in May.
The markets in the UK were closed for the holiday.
U.S. government bonds were silenced on Thursday after Breinard said the claim for a halt in interest rate hikes in September was “very difficult,” and threw water on Fed Yunai’s chances of being more frightened by investors restraining their growth.
The yield on the 10-year US Treasury bill was less than 0.01 percentage points at 2.91%. The sensitive return for the two-year policy was fixed at 2.64 percent.
Following the move in the Treasury Attack of sale The day before, after stronger-than-expected results from a close-up survey in the U.S. manufacturing sector, indicating that the Fed may have more room to raise lending costs without triggering a recession.
U.S. job data released Friday will offer further hints as to how the central bank may tighten policy to curb price increases, while a warmer labor market may indicate the need for more aggressive action. News in May, compared to 428,000 in April.
Meanwhile, Brent crude rose 1.4 percent to $ 117.91 a barrel despite OPEC and its allies Consent to accelerate oil production July and August. Despite the rise in oil, energy was the sector with the worst performance at S&P on Thursday.
Saudi Arabia’s decision to increase supplies would likely be more symbolic – showing the kingdom responds to U.S. pressure for more crude oil – than disrupting balances, given the modest increases agreed, analysts said.
While the deal called on the cartel members to do so Increase production At nearly 650,000 barrels a day, actual increases are expected to be closer to 350,000 b / d, as some members are struggling to meet their quotas, consulting firm Rapidan Energy Group said.
Most of OPEC’s additions agreed on Thursday have already been planned and will be priced into the oil market.
Losses from the oil sector hit by Russia’s sanctions later this year could also dwarf the size of OPEC + additions, with the International Energy Agency saying the country could lose up to 3 million barrels a day from supply – about 3% of global demand – as the embargo tightens.
Wall Street stocks look past bleak Microsoft outlook and a hawkish Fed Source link Wall Street stocks look past bleak Microsoft outlook and a hawkish Fed