The US markets ended higher on Wednesday after the Federal Reserve left benchmark interest rates unchanged near zero and Fed Chair Powell reiterated his promise to provide support until the threat of the coronavirus to the US economy has passed. The Fed said it decided to maintain the target range for the federal funds rate at 0 to 0.25 percent, where it has remained since an emergency rate cut on March 15. Powell noted that households and the jobs market have slightly improved since May as the nation made headway against the biggest shock to the US economy in living memory, but also warned that rising coronavirus cases in many states now threaten the pace of the recovery. Further, buying interest was generated in reaction to the latest batch of earnings news, with a number of big-name companies reporting better than expected quarterly results. Chipmaker Advanced Micro Devices moved sharply higher after reporting second quarter results that exceeded street estimates and raising its full-year guidance.
Shares of C.H. Robinson also spiked after the transportation services provider reported second quarter results that beat street estimates on both the top and bottom lines. The strength on markets also came following the release of a report from the National Association of Realtors (NAR) showing another significant increase in pending home sales in the month of June. NAR said its pending home sales index surged up by 16.6 percent to 116.1 in June after skyrocketing by 44.3 percent to 99.6 in May. Street had expected pending home sales to jump by 15.0 percent. A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Dow Jones Industrial Average gained 160.29 points 0.61 percent to 26,539.57, Nasdaq rose 140.85 points or 1.35 percent 10,542.94 and S&P 500 was up by 40 points or 1.24 percent to 3,258.44.
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