US markets end higher on Wednesday

07 Mar 2024 Evaluate

The US markets ended higher on Wednesday. The rebound on markets reflected a positive reaction to congressional testimony by Federal Reserve Chair Jerome Powell. Powell told the House Financial Services Committee it will likely be appropriate for the Fed to begin lowering interest rates at some point this year, although he reiterated officials need greater confidence inflation is moving sustainably toward 2 percent. The Fed Chief described the economic outlook as uncertain and said progress towards the Fed's 2 percent inflation objective is not assured. Powell said future interest rate decisions will be based on careful assessment of the incoming data, the evolving outlook, and the balance of risks.

On the economic data front, a report released by payroll processor ADP showed private sector employment in the U.S. increased by slightly less than expected in the month of February. ADP said private sector employment rose by 140,000 jobs in February after climbing by an upwardly revised 111,000 jobs in January. Street had expected private sector employment to grow by 150,000 jobs compared to the addition of 107,000 jobs originally reported for the previous month. On the sectoral front, Semiconductor stocks turned in a strong performance on the day, with the Philadelphia Semiconductor Index surging by 2.4 percent to a record closing high. Considerable strength was also visible among computer hardware stocks, as reflected by the 1.8 percent jump by the NYSE Arca Computer Hardware Index. The index also reached a record closing high.

Dow Jones Industrial Average rose 75.86 points or 0.2 percent to 38,661.05, Nasdaq gained 91.96 points or 0.58 percent to 16,031.54 and S&P 500 was up by 26.11 points or 0.51 percent to 5,104.76.