(Reuters) – Wall Street met Friday, Federal Reserve Chairman Jerome Powell said the current rate hike rate approach by the central bank was the best way to protect the economic recovery in the US.
Gradual interest rate hikes are also the best way to keep job growth as strong as possible and keep inflation under control, according to Powell. His comments had little influence on the market expectations of an interest rate increase in September and possibly in December.
"The Fed has a lot of confidence in the US economy and Powell indicates that the Fed is not planning to slow interest rate hikes and it seems that they are now over from trading problems," said Chris Zaccarelli, Independent Chief Investment Officer. Advisor Alliance in Charlotte.
"We see that some of the more cyclical sectors such as energy and materials continue to rise, in the expectation that the Fed will keep the economy running a little warm."
A dip in the dollar after Powell's comments helped oil and metal prices to rise. The materials sector increased by 1.33 percent, the largest of the 11 S & P sectors and the energy sector gained 1.03 percent. [O/R] [MET/L]
The KBW bank index rose by 0.24 percent, less than the 0.42 percent higher S & P financial index. All 11 main sectors were higher.
Economic data also increased sentiment. New orders for major capital goods produced in the US rose more than expected in July and the growth of shipments remained good, according to the Ministry of Commerce.
At 12:49 EDT the Dow Jones Industrial Average was 158.05 points higher, or 0.62 percent, at 25,815.03 the S & P 500 increased by 18.29 points, or 0.64 percent, to 2,875.27 and the Nasdaq Composite rose by 67.10 points, or 0.85 percent. at 7,945.56.
The Russell 2000 index with small hood has risen 0.53 percent to a record high.
If the S & P closes the session above its January 26 record, it would confirm the longest bull market trend of the benchmark index.
Netflix rose 4.8 percent after SunTrust Robinson Humphrey upgraded the shares to "buy", indicating that subscriber growth in the current quarter was well in line or better than expected.
Autodesk jumped 15.2 percent, most on the S & P, after the quarterly results from the software maker had surpassed the estimates.
Gap Inc. fell by 10 percent and Foot Locker by 11.7 percent after the two retailers noted disappointing sales in the store.
Promotion problems were in the minority than the decliners with a 2.53-to-1 ratio on the NYSE. Promotion problems were in the minority than the decliners with a 1.88-on-1 ratio on the Nasdaq.
The S & P index recorded 35 new 52-week highs and three new lows, while the Nasdaq saw 137 new highs and 26 new lows.
(Reporting by Shreyashi Sanyal & Savio D & # 39; Souza in Bangalore; Editor by Anil D & # 39; Silva)