US stocks resume upward climb after Federal pause
Wall Street stocks resumed their upward climb to close higher Thursday, with banking shares rising steeply in the wake of the Federal Reserve decision to raise interest rates. The Fed’s announcement Wednesday provoked the biggest drop in the market since the November 8 US elections. But investors were back in rally mode after absorbing the rate hike, as well as the rise in the dollar that could pose challenges to multinationals.
“We are back in a place where we are all expecting an environment that is pro-growth, pro-business, less regulation,” said Art Hogan, chief market strategist at Wunderlich Securities. The Dow Jones Industrial Average climbed 0.3 percent to end at 19,852.24. The broad-based S&P 500 closed 0.4 percent higher at 2,262.03, while the tech-rich Nasdaq Composite Index advanced 0.4 percent to 5,456.85.
Financial shares led other sectors, with JPMorgan Chase winning 1.5 percent, Bank of America 2.2 percent and Citigroup 1.3 percent. Yahoo slumped 6.1 percent on worries its latest massive data breach could derail an acquisition by Verizon of its operating assets for $4.8 billion. Verizon rose 0.4 percent. Yahoo disclosed on Wednesday that personal info from over a billion users was stolen in a hack dating back to 2013.
Facebook gained 0.3 percent after unveiling a tool to root out fake news, misinformation that some claim influenced the 2016 election. Facebook said it would begin testing a system enabling users to click on news items if they suspect they are fabricated. Rupert Murdoch’s 21st Century Fox dipped 0.7 percent after reaching a deal to take control of pan-European pay-TV giant Sky for $14.8 billion in cash. Food giant Mondelez International jumped 4.4 percent following a report it could be acquired by Kraft Heinz. A note from Morgan Stanley said such a transaction was “logical.” Kraft Heinz advanced 1.2 percent. — AFP
DES MOINES: This file photo taken on December 8, 2016 shows US President-Elect Donald Trump speaks in Des Moines, Iowa during the USA Thank You Tour 2016 at the Hy-Vee Hall in the Iowa Events Center. — AFP