Wall Street has had a great trading day. Shares on the New York Stock Exchange strengthened significantly during Thursday. Technology titles did particularly well. They were helped by better-than-expected data on the development of the US economy.
Stocks rise towards the end of the week
The main index of the New York Stock Exchange S&P 500 added 1.41, the technological Nasdaq 1.67 and the Dow Jones Industrial Average then 0.98 percent. American stocks showed a solid rise at the end of the week. And this shortly before the key and long-awaited speech of the Governor of the Federal Reserve System, Jerome Powell.
The Fed may raise interest rates more than expected
He will speak at the traditional meeting of central bankers in the American town of Jackson Hole, and investors are anxiously awaiting what he will come up with. A better than originally estimated development of the American economy may mean that the Fed will raise interest rates a little more in September than was originally assumed.
So that the rates will increase by 0.75 instead of the original 0.50 percentage point. There would be a greater reason for a bigger “hike” precisely with regard to the better condition of the American economy. The Fed could focus on fighting inflation and use a heavier caliber against it. But that would not be good news for stock markets.
