US stocks responded positively to the Federal Reserve chairman, Janet Yellen, testimony to Congress on Wednesday closing broadly up.
All three major stock indexes made gains jolted by Yellen's indication of gradual rate rises. However, she also said the Fed would watch inflation which is still below its 2% target.
- Dow 21,532 +0.58%
- S&P 500 2,443 +0.73%
- Nasdaq 6,261 +1.10%
- Russell 2000 1,424 +0.80%
- NYSE Composite 11,825 +0.69%
- Gold 1,219.4 +0.39%
- Oil WTI $47.64 +0.25%
- 10-Year Treasury Yield 2.33% -0.04
Tightening labour market
The beige book data for June on the labour market released by Federal Reserve showed modest economic growth. Some industries suffered a shortage of workers and the report indicated that while "wage pressures" were in line with emploment conditions this did not yet produce "upward pressure of prices and wages".
Dow shot up to a new jumping +123 points or +0.58%, the S&P 500 moved 17.75 points or +0.73% while the Nasdaq went up 67 points or +1.10%.
Crude oil stockpiles are falling sending oil prices up a notch, but investors still remain cautious over glut concerns. US inventories were slashed by 7.6 mn barrels according to US Energy Information Administration. Global benchmark, brent crude went up by 22 cents or 0.5%. Energy shares rebounded as a result.
Gains were made across the board with many industry groups advancing. Renewable energy equipment up +5.26%, toys up +2.88% and consumer electronics +2.51% were among the leaders.