US: Stocks resume upward climb after brief pullback
WALL Street stocks bounced on Thursday (Dec 21), resuming their upward climb in a market propelled by bullish sentiment as inflation moderates and central bankers shift policy.
After Wednesday’s one-day pullback, all three major indices rose about one per cent.
“The market is extremely overbought,” said Tom Cahill of Ventura Wealth Management. “And when you have situations where the market gets overbought like this and it doesn’t sell off, that’s a very good indication that it’s in a strong uptrend.”
The Dow Jones Industrial Average finished up 0.9 per cent at 37,404.35.
The broad-based S&P 500 gained 1.0 per cent to 4,746.75, while the tech-rich Nasdaq Composite Index tacked on 1.3 per cent to 14,963.87.
The Commerce Department estimated US growth at 4.9 per cent in the third quarter, down from a prior estimate of 5.2 per cent due to lower consumer spending.
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The report comes ahead of Friday’s heavy schedule of economic reports, which includes closely watched consumer pricing data.
Among individual companies, Micron Technology surged 8.6 per cent as it projected higher than expected revenues for its fiscal second quarter of 2024 while the company predicted that business fundamentals would improve “throughout 2024.”
The results also gave momentum to other chip companies such as Advanced Micro Devices, which rose 3.3 per cent and Nvidia, which advanced 1.8 per cent.
Warner Brothers Discovery shares fell 1.5 per cent following that the media and entertainment giant is exploring a merger with rival Paramount Global. Paramount dropped 2.8 per cent.
Boeing advanced 0.6 per cent after confirming its first delivery of a new jet to a Chinese airline since 2019. AFP
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