and Caroline Valetkevitch
NEW YORK, July 28 (Reuters) – The New York stock market ended higher on Thursday for a second straight session as data showing the U.S. economy contracted for a second straight quarter fueled speculation that the Federal Reserve (Fed) is not mess than expected and its level is increasing.
The Dow Jones Industrial Average gained 1.03%, or 332.04 points, to 32,529.63 points.
The broader S&P-500 gained 48.82 points, or 1.21%, to 4,072.43 points.
The Nasdaq Composite rose by 130.17 points (1.08%) to 12,162.59 points.
For the most part, major S&P-500 sectors ended in the green, particularly the services sector.
The yield on the ten-year US Treasury declined, suggesting that “markets think the Fed will have to change and push rates more slowly at some point, perhaps in the next 12 months.” , commented Mona Mahajan, chief strategist at Edward Jones.
“It means that the pace of tightening (of the Fed’s monetary policy) will be gradual going forward,” he added.
With earnings season in full swing, growth forecasts have improved as more S&P-500 companies report quarterly results that beat expectations.
Among them, the Ford car manufacturer whose name jumped 6.1% after the publication of better than expected quarterly profit.
According to the first estimate published during the day by the US Department of Commerce, the US economy contracted again in the second quarter, by 0.9% over a year, while the agreement gave an increase of 0, 5%.
Whether or not two consecutive quarters of recession usually equals a recession, authorities in the U.S. look at a number of indicators, including the labor market and spending.
Wall Street was again in the green on Wednesday following the Fed’s statement, the US central bank having decided during its monetary policy meeting to raise, as expected, its interest rates by 75 basis points.
In the context of rising inflation, investors fear that a sharp rate hike by the Fed will at some point plunge the US economy into recession.
Meta Platforms fell 5.2% after posting a drop in first-quarter earnings on Wednesday.
(French version Jean Terzian)