Major stock trades finished mostly in positive territory as market participants tried to understand whether the US economy is growing so fast that the Fed was forced to step up measures to tighten monetary and credit policy.
However, the president of the Federal Reserve Bank of St. Louis Bullard tried to moderate the growing expectations that the Fed will raise the rate four times this year. "The assumption that we should raise the rate by 100 basis points in 2018 seems to me excessive," Bullard said. "Everything must go right, with forecasts exceeding the forecast in order to justify such rates of tightening."
Investors also analyzed data on the United States. As it became known, the number of Americans applying for new unemployment benefits fell last week for the third time in four weeks. Initial applications for unemployment benefits fell by 7,000 to 222,000, seasonally adjusted for the week ending February 17, the Ministry of Labor said on Thursday. Economists were expecting 230,000 new applications last week.
In addition, the Conference Board's leading indicators index (LEI) for the US increased by 1.0 percent in January to 108.1, after rising 0.6 percent in December and 0.4 percent in November. "LEI accelerated in January and continues to point to sustained economic growth in the first half of the year. Although the recent stock market volatility will not be reflected in the LEI in the US until next month, the prospects for consumers and business in the economy have improved in a few months and should not be seriously affected, "said Ataman Ozildirim, director of business cycles and growth studies at the Conference Board . "Leading indicators reflect the economy with broad strengths that emanate from financial conditions, production, housing and the labor market."
Most components of the DOW index recorded a rise (19 out of 30). The leader of growth was shares United Technologies Corporation (UTX, + 3.34%). Outsider - Cisco Systems, Inc. (CSCO, -0.85%).
Most sectors of S & P completed the auction in positive territory. The commodities sector grew most (+ 0.8%). The largest decline was shown in the financial sector (-0.3%).
At closing:
Dow + 0.66% 24.962.48 +164.70
Nasdaq -0.11% 7,210.09 -8.14
S & P + 0.10% 2,703.96 +2.63