US stocks re­sume up­ward climb af­ter Fed­eral pause

Kuwait Times - - BUSINESS -

NEW YORK:

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

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