• Major US stock indexes finished trading in positive territory

Market news

20 December 2016

Major US stock indexes finished trading in positive territory

Major US stock indexes rose on Tuesday, with the Dow hit a record high against the background of growth of Goldman Sachs (GS), which gave the biggest boost blue-chip index. The market reacted calmly to the deadly attacks in Germany and Turkey, as well as fire at the Islamic center of Zurich in Switzerland. Trading activity in the market is low and likely to remain so, as many market participants go on vacation.

Market participants are focused on the promises of the newly elected President of the United States, Donald Trump and prospects of the Fed's monetary policy in 2017. Recall, at its last meeting, which ended on Wednesday, 14 December, the regulator will not only increase the interest for the first time this year (by 0.25 percentage points to 0.50% -0.75%), but also improved predictions about the pace of rate hikes in the next year: at the moment it predicted three raises rates by 25 bps against two waiting at previous meetings. Optimism added as a comment yesterday Fed Chairman Janet Yellen relatively labor market prospects in the US and accelerating inflation. Ms. Yellen said that the labor market has improved his fortune to the most severe in a decade, wage growth has increased, which has helped to increase inflation expectations and the expectations of the Fed interest rates.

It is also worth noting that after the closure of the trading session is expected to publish quarterly reports FedEx (FDX) and Nike (NKE).

DOW index components closed mostly in positive territory (21 of 30). Most remaining shares rose NIKE, Inc. (NKE, + 1.72%). Outsider were shares of Merck & Co., Inc. (MRK, -1.05%).

Almost all sectors of the S & P ended the session in positive territory. The leader turned out to be the financial sector (+ 0.7%). Decreased only utilities sector (-0.1%).

At the close:

Dow + 0.46% 19,973.73 +90.67

Nasdaq + 0.49% 5,483.94 +26.50

S & P + 0.36% 2,270.73 +8.20

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