US: Nasdaq rallies as stocks shake off recent weakness

TECH shares powered higher on Thursday (Jun 22) as markets shook off recent weakness even as the Bank of England and other central banks hiked interest rates again to counter inflation.

Google parent Alphabet rose 2.2 per cent and Amazon won 4.3 per cent as the S&P 500 and Nasdaq broke a three-day losing streak.

The tech-rich Nasdaq Composite Index finished up 1.0 per cent at 13,630.61.

The broad-based S&P 500 advanced 0.4 per cent to 4,381.89, while the Dow Jones Industrial Average was essentially unchanged at 33,946.71.

The gains came as Federal Reserve officials continued to vow an aggressive stance on inflation. Fed governor Michelle Bowman said more rate increases were probably needed “to meaningfully and durably bring inflation down”.

But investors are sceptical the Fed will follow through.

“The market just doesn’t believe it,” said Quincy Krosby of LPL Financial, adding that many expect an improvement in US inflation data that will be released ahead of the Fed’s next decision.

Among individual companies, Boeing shares shed 3.0 per cent after Spirit AeroSystems, a key supplier on the 737 MAX, announced it was suspending factory production.

This came after workers represented by the International Association of Machinists and Aerospace Workers rejected a new contract.

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Spirit shares dropped 9.5 per cent.

Banking shares were under pressure as Martin Gruenberg, head of the Federal Deposit Insurance Corporation, said regulators were considering new capital requirements on larger banks.

JPMorgan Chase, Bank of America and Goldman Sachs all lost more than 1.5 per cent. AFP