Fundamental Comment

US stocks close higher on rate cut expectations, Citigroup earnings

US stocks close higher on rate cut expectations, Citigroup earnings

The rise in the technology shares led the Nasdaq 100 to a new record high at the start of a week of corporate earnings, amid expectations the Federal Reserve would hike interest rates.

At the end of the trading day, the Dow Jones Industrial Average DJIA increased by 0.10 percent to 27,359.16, S&P 500 soared 0.02 percent to 3,014.30 and the Nasdaq Composite edged up by 0.17 percent to an all-time high of 8,258.19.

The three main indexes closed last week at record highs as Federal Reserve Chairman Jerome Powell's comments reinforced hopes that the central bank would offer its first rate cut in a decade later this month.

As the July 30-31 monetary policy meeting nears, the debate now is how deep they will cut and what will they do afterward.

The second-quarter income of Citigroup Inc. rose 7 percent from a year ago, with profit rising to $4.8 billion after it was $4.49 billion a year ago. Earnings came better than forecasts $1.95 billion profit.

Dow Jones stock Apple was one of the top gainers, while Boeing was the biggest loser among.

Apple stock rallied nearly 1% reaching for $215.41, while Boeing stock slipped in the afternoon trade by more than 3 percent to $361.89 after the Wall Street Journal reported Boeing's 737 MAX jet could remain grounded into 2020 over a growing list of issues.

The yield on 10-year Treasury bonds fell 1.15 percent on Monday. It is widely expected that the Federal Reserve will cut its interest rate target by 25 points this month, while some analysts expect a bold cut by 50 points.

As of 16:14 EST, the US dollar index, which measures the US dollar against six major currencies, increased by 0.14 percent to 96.95.

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