Breaking News

You are here » Indian-Commodity  :  International & World Stock  :  US markets closed higher; Dow ends above 26,000

18-Jan2018

US markets closed higher; Dow ends above 26,000

The US markets closed higher on Wednesday, with the Dow industrials staged a late rally to end above 26,000 for the first time ever, knocking out another round-number milestone at a history-setting pace for blue chips, with all the main equity indexes finishing at all-time highs. An upbeat gauge of conditions at the Federal Reserve's business districts contributed to the buying sentiment.

The Federal Reserve said that the US economy and inflation expanded at a modest-to-moderate pace from late November through the end of 2017, while wages continued to push higher. The US central bank said in its periodic Beige Book report on the economy that most districts said that wages increased at a modest pace. A few districts observed that firms were raising wages in a broader range of industries and positions since the previous report. Several regional Fed districts noted increases in manufacturing, construction, and transportation input costs. Some reported expectations of further wage increases in the coming months, though prices pressures were still mixed. Despite still weak inflation overall, Fed policymakers currently expect to raise interest rates three times this year. The central bank raised rates three times in 2017 against a backdrop of steady growth and low unemployment. The majority of Fed policymakers appear to be putting more emphasis on the need to raise rates given the economy is at or near full employment rather than waiting until inflation appreciably rises. US job growth slowed more than expected in December amid a decline in retail employment, but a pick-up in monthly wage gains pointed to labor market strength that could pave the way for the Fed to increase rates in March.

On the economy front, industrial production rose 0.9% in December for the fourth straight monthly increase. The gain was above expectations of a 0.6% increase. For the fourth quarter, production jumped at an 8.2% annual rate, after a 1.3% drop in the prior quarter caused by hurricane damage. For the calendar year, production rose 3.6%, up from a 0.8% gain in 2016 and the fastest pace since 2010.  In December, output among manufacturers only rose 0.1%. Most of the gain in production in December came from mining and utilities. Mining output rose a strong 1.6% in December while utility output jumped 5.6%. Production among auto makers rose 2%. Capacity utilization, meanwhile, rose to 77.9% in December, the highest rate since February 2015.

The Dow Jones Industrial Average added 322.79 points or 1.25 percent to 26,115.65, the Nasdaq gained 74.594 points or 1.03 percent to 7,298.28, and the S&P 500 edged higher by 26.14 points or 0.94 percent to 2,802.56.


Related News

View all news

US markets end lower on Tuesday

After the sell-off seen in the previous session, the US markets once again closed in red on Tuesday. With the continued drop, the tech-heavy Nasdaq fell to its lowest closing level in over seven months.......

US markets close sharply lower on Monday

The US markets closed sharply lower on Monday with the Nasdaq falling to its lowest closing level in almost five months, as the biggest and most popular technology stocks plunged. Facebook and Apple led......

Asian markets exhibit mixed trend in early deals on Monday

Asian market indices are exhibiting mixed trend in early deals on Monday, amid the ongoing trade tensions between United States -China and on renewed anxiety about Brexit. The Japanese market is advancing......

Top News

View all news

Megastar Foods planning to incorporate subsidiary

Megastar Foods is planning to incorporate a subsidiary Company. The meeting of the Board of Directors of the company is scheduled to be held on November 27, 2018, to consider the same. Megastar Foods is......

Lupin launches generic Tetrabenazine Tablets

Lupin has launched Tetrabenazine Tablets, 12.5 mg and 25 mg having received an approval from the United States Food and Drug Administration (USFDA) earlier. Lupin's Tetrabenazine Tablets, 12.5 mg and 25......

UPL's arm signs definitive agreement to acquire entire stake of IBC

UPL's wholly owned subsidiary-- UPL Corporation, Mauritius has signed a definitive agreement to acquire directly or through its subsidiaries 100% of the shares of INDUSTRIAS BIOQUIM CENTROAMERICANA, SOCIEDAD......