Stocks in the United States strengthened again at the end of the week. Thanks to continued enthusiasm for artificial intelligence (AI), technology companies thrived. Falling government bond yields also supported growth. In the foreign exchange market, the dollar weakened. The Dow Jones index, which includes shares of thirty leading US companies, gained 0.23 per cent to end trading at 39,087.38 points. The broader S&P 500 index rose 0.8 percent to a record 5,137.08 points and the Nasdaq Composite index, which includes many companies in the high-tech sector, rose 1.14 percent to also a record 16,274.94 points.
Strengthening
For the week, the S&P 500 gained 0.95 percent, the Nasdaq added 1.74 percent and the Dow Jones fell 0.11 percent. Each of the three major U.S. indexes notched their fourth straight month of gains in February.
Equity markets are also supported by a resilient U.S. economy. Investors are now trying to gauge when the first cut in the benchmark interest rate will occur. Currently, the US Federal Reserve (Fed) is expected to start cutting interest rates in June.
“Our view is that the first cut will come in June and they will cut interest rates three times before the end of the year,” said Sam Stovall, an analyst at CFRA Research in New York.
Dollar Index
On the foreign exchange market, the dollar weakened against the euro today. The US currency was dragged down by the latest macroeconomic statistics, which were weaker than expected. Shortly before 22:00 CET, the euro added 0.3 percent to the dollar to $1.0837. The dollar index, which measures the value of the dollar against six major world currencies, lost 0.2 percent to 103.90 points.
Against the Japanese yen, however, the dollar gained 0.1 percent, selling at JPY150.14. The yen was weakened by central bank Governor Kazuo Ueda’s statement that it was too early to declare victory in the fight against inflation.
Source: Czech Press Office
