US markets end higher on Tuesday

08 Feb 2023 Evaluate

The US markets ended higher on Tuesday following Federal Reserve Chair Jerome Powell’s comments indicating inflation has started easing. Investors cheered Powell’s comments on disinflation, hoping they indicated the central bank could continue slowing on its interest rate hike campaign. However, Powell said that the Fed could be forced to hike more aggressively, which could have briefly spooked investors. Microsoft shares gained nearly 4 percent. Boeing surged 3.8 percent, and Chevron climbed 2.6 percent. Walt Disney, Merck, Travelers Companies, Apple, Intel, Salesforce.com, JP Morgan Chase, American Express, Goldman Sachs and Walgreens Boots Alliance also posted impressive gains. Hertz climbed 7.5 percent, and DuPont shares surged 7.8 percent on stronger than expected results.

On the economic data front, the Commerce Department released a report showing an increase in the size of the U.S. trade deficit in the month of December. The report said the trade deficit widened to $67.4 billion in December from a revised $61.0 billion in November. Street had expected the deficit to widen to $68.5 billion from the $61.5 billion originally reported for the previous month. The increase in the size of the trade deficit came as the value of imports jumped by 1.3 percent to $317.6 billion, while the value of exports fell by 0.9 percent to $250.2 billion.

Dow Jones Industrial Average rose 265.67 points or 0.78 percent to 34,156.69, Nasdaq surged 226.34 points or 1.9 percent to 12,113.79 and S&P 500 was up by 52.92 points or 1.29 percent to 4,164.