Key Economic Indicators and Sector Performance
On Thursday morning, the three major indices of Wall Street showed modest gains following a telephone conversation between U.S. President Donald Trump and his Chinese counterpart, Xi Jinping. The Dow Jones Industrial Average, consisting of 30 major company stocks, increased by 0.28% to reach 42,548.65 points. The S&P 500, which includes the most valuable companies, rose by 0.41% to 5,995.55 points. The Nasdaq Composite, a technology-heavy index, climbed 0.70% to 19,597.31.
Recent Economic Data and Investor Sentiment
The details of the phone call remain undisclosed, but it comes shortly after both economic powers exchanged accusations regarding the violation of trade agreement terms. Recently, new U.S. jobless benefit claims data was released, showing an 8,000 increase to 247,000 for the week ending May 31. This figure surpassed the anticipated 235,000.
Investors are gearing up for the upcoming non-farm payrolls report, which is expected to influence the Federal Reserve’s decision on interest rates. According to Andrés L. Espinosa, a business development manager at Excent Capital, “A negative report could prompt the Fed to lower interest rates, which would be positive for stocks in the long term.”
Sector-wise Performance
Technology and communication services sectors led the gains. Within the Dow Jones index, notable advances were seen in technology stocks such as:
- Amazon.com: +2.15%
- Salesforce Inc: +1.88%
- Nvidia: +1.32%
Key Questions and Answers
- What was the outcome of the Trump-Xi Jinping phone call? The specifics of their conversation remain undisclosed, but it occurred following recent trade disputes between the U.S. and China.
- What recent economic data was released? New U.S. jobless benefit claims data showed an 8,000 increase to 247,000 for the week ending May 31.
- How might the upcoming non-farm payrolls report impact Wall Street? A negative report could lead the Federal Reserve to lower interest rates, which would be beneficial for stocks in the long term.
- Which sectors performed well on Wall Street? Technology and communication services sectors led the gains, with notable advances in stocks like Amazon.com, Salesforce Inc, and Nvidia.
