US stocks strengthened again today. The Dow Jones index gained 0.49 percent, while the broader S&P 500 index rose by 0.58 percent and the Nasdaq Composite by 0.45 percent. Both the S&P 500 and Nasdaq indices thus closed trading at new highs.
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Market Boosted by Lower Bond Yields
The Dow Jones index, which includes shares of 30 leading American companies, rose to 51,521.28 points. The broader S&P 500 index increased to 7,818.93 points, and the Nasdaq Composite index, which represents many companies from the advanced technology sector, climbed to 27,599.79 points. Market sentiment was supported by a decline in U.S. government bond yields. Investor attention is now shifting towards the upcoming earnings season for American companies. Next week, several major U.S. banks will announce their third-quarter financial results.
Shares of chip manufacturer Advanced Micro Devices (AMD) gained almost three percent today. This was in response to a statement by the company’s CEO, Lisa Su, that AMD plans to significantly increase chip shipments next year to meet growing demand related to the development of artificial intelligence (AI). Shares of competitor Marvell Technology rose by almost six percent after the company improved its revenue forecast for next year.
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Euro Strengthens After Falling to 17-Month Low
On the foreign exchange market today, the euro strengthened after falling to a 17-month low against the dollar on Monday. Today’s decline in French government bond yields eased concerns about a potential debt crisis in the eurozone. Around 10:00 PM CEST, the single European currency gained approximately 0.3 percent, trading near 1.1260 USD. On Monday, it had dropped as low as 1.1161 USD, its lowest since last May.
Concerns about France’s ability to control its budget deficit have recently led to a widespread sell-off of French government bonds. According to analysts, France’s budget problems are very serious in themselves, and their resolution is further complicated by the tense political situation in the country ahead of the upcoming presidential elections. Furthermore, on Monday, pressure on the euro increased with the news that Spanish Prime Minister Pedro Sánchez called snap parliamentary elections, which will take place in late November.
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Source: ÄŒTK
