Most U.S. stocks finished in green on Thursday, with the Dow Jones hitting 27,000 points for the first time ever, on hopes of an interest rate cut by the Federal Reserve later this month, especially after the testimony of the Fed Chairman.
Federal Reserve Chairman Jerome Powell strengthened rate cut hopes with his testimony before the Senate Banking Committee Thursday and House Financial Services Committee Wednesday.
Once again, Powell delivered the same message today, as he said the central bank was prepared to cut interest rates to support the economy.
"Uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook," Powell said while testifying for a second day before Congress.
By the same token, Fed minutes for June meeting released on Wednesday said: “Several” policy makers said a near-term rate cut was warranted from a risk-management perspective because it “could help cushion the effects of possible future adverse shocks to the economy.”
However, President Donald Trump tweeted earlier in the session, complaining about China trade policy which fluctuated the stocks somehow, saying "China letting us down in that they have not been buying the agricultural products from our great farmers that they said they would."
At the end of the trading day, the Dow Jones Industrial Average rose 0.85 percent, or 227.81 points, to 27,088.01 and the S&P 500 increased by 0.19 percent to 2,996.24, while the Nasdaq Composite closed lower at 8,196.04 after dropping 0.08 percent.
Microsoft, Nvidia Corp. and Apple enhanced the rally in the tech sector. Also, a 5.3-percent gain in UnitedHealth Group helped the Dow break above 27,000 points for the first time. Cigna Corp surged 9%.
As of 16:00 EST, the US dollar index, which
measures the value of the dollar against six major currencies, declined by 0.05
percent to 97.05.