Business
A new high on Wall Street! Dow and S&P 500 set new records; Nasdaq dragged down by Oracle results – The Times of India
Wall Street closed on a split note on Thursday as the Dow Jones Industrial Average and S&P 500 seized spotlight with their new record highs while Nasdaq traded in red. The Dow Jones Industrial Average and the S&P 500 climbed to fresh milestones on Thursday, lifted by investors still riding the momentum set off by the Federal Reserve’s latest rate cut. The Dow rose 1.3%, driven by strong gains in banks and industrial stocks, while the S&P 500 also pushed into record territory, ending at 0.21% gain. The rally followed an upbeat session in Europe and a mixed day in Asia, with global markets continuing to respond positively to the Fed’s less hawkish tone on Wednesday (local time). But the Nasdaq’s 0.3% dip highlighed the market’s lingering nerves around AI-linked valuations. The Nasdaq, however, was weighed down by a sharp slump in Oracle shares that reignited long-standing worries about the soaring cost of artificial intelligence bets.“Even as investors were reassured by the Fed’s latest rate cut, familiar concerns about AI are still very much top of mind right now,” Deutsche Bank managing director Jim Reid told AFP.The concerns resurfaced after Oracle revealed late on Wednesday that its quarterly revenue had fallen short of expectations and that it had ramped up spending on data centres to expand AI capacity. The stock sank 10.8% by the close, having earlier fallen even further.Dave Grecsek of Aspiriant Wealth Management said the reaction highlighted the market’s discomfort with the scale of AI-related investments.“There’s still a lot of apprehension about how sustainable some of these capital spending plans are, what the return on those investments are, and especially now that they’re financed with debt,” he said, as cited by AFP.Last month, global markets briefly faltered as investors were cautious by the AI bubble concept, questioning whether the massive sums flowing into artificial intelligence risked inflating a bubble that could eventually burst.The Fed’s rate cut, its third in a row, was anticipated, but an unusually high number of dissenting votes has clouded expectations over where borrowing costs are headed next.“Investors have shrugged off the Fed’s latest reduction in US borrowing costs as it is becoming harder to guess where rates might go next,” said AJ Bell investment director Russ Mould.Fed officials remain split on the outlook for 2026, including whether more cuts will be needed and how many. Still, eToro US analyst Bret Kenwell noted that Fed Chair Jerome Powell pointed out that none of the policymakers foresee rate hikes in 2026 in their baseline scenario.“The lack of an outright hawkish tone from the Fed combined with its third consecutive rate cut could pave the way for a potential year-end rally in equities, provided that next week’s macroeconomic data doesn’t derail the recent bullish momentum,” Kenwell said.The reduction brings interest rates to their lowest level in three years as policymakers attempt to shore up a labour market that has shown signs of strain throughout 2025.The dollar weakened while oil prices slipped following the decision.Among corporate movers, Disney added 2.4% after unveiling a three-year licensing agreement with OpenAI, giving users the ability to create short AI-generated videos featuring popular Disney characters.
The speed of price rises in the UK has stayed the same, according to data which was collected before the US-Israel war with Iran began.
Source link
Buying continued at the Pakistan Stock Exchange (PSX), with the benchmark KSE-100 Index gaining over 1,700 points during the opening minutes of trading on Wednesday. At 10 am, the benchmark index was at 155,730.37, up 1,764.37 points (1.13%).
Buying interest was observed in key sectors, including automobile assemblers, cement, commercial banks, fertiliser, oil and gas exploration companies, OMCs, power generation, and refinery. Index-heavy stocks, including ARL, HUBCO, PSO, MARI, OGDC, POL, PPL, HBL, MCB, and MEBL traded in the green.
On Tuesday, PSX ended with moderate gains as thin volumes and profit-taking capped the upward momentum despite supportive global cues and easing geopolitical concerns.
The KSE-100 Index closed at 153,966.36 points, gaining 1,225.99 points or 0.80%.
K-Electric led trading volumes with over 35 million shares exchanged, coinciding with the company’s announcement of a new chief executive earlier in the day.
Market heavyweights, including Engro Holdings, Fauji Fertiliser Company, Lucky Cement, Systems Limited, and Hub Power Company, contributed significantly to the index gains, while banking and select industrial stocks weighed on overall performance.
Despite the rebound, analysts noted that the market remained cautious after last week’s decline, which was driven by geopolitical uncertainty, particularly tensions in the Middle East, and concerns over global energy prices.
Experts suggest that future market direction will depend on regional stability, energy policy developments, and progress in ongoing discussions with the International Monetary Fund.
Globally, stocks rose, and oil fell on Wednesday on reports the US is seeking a month-long ceasefire in its war on Iran, and had sent a 15-point plan to Iran for discussion, raising hopes for a resumption of oil exports out of the Persian Gulf.
S&P 500 futures rose 0.9% in the Asian morning, European futures lifted 1.2%, and Brent crude futures fell about 6% to $98.30 a barrel.
Fed hike odds jump to 26% from 70% cut probability week ago as Middle East war fuels inflation fears
A picture showing $100 bills. SOURCE: REUTERS
Currency markets took a breather on Wednesday, with traders cautious over United States President Donald Trump’s efforts to bring an end to the war with Iran. While Trump told reporters at the White House the US was making progress in talks with Iran, Tehran denied that direct negotiations had taken place, keeping investors on edge.
The US dollar index, which measures the greenback’s strength against a basket of six currencies, was last 0.13% higher at 99.317, with the euro little changed at $1.1603. The British pound was 0.16% weaker at $1.3388 as data showed that British consumer price inflation held at an annual rate of 3.0% in February, unchanged from January’s rate. However, inflation is broadly expected to pick up as the war in the Middle East pushes up prices.
The subdued volatility contrasted with a pickup in equities and a fall in crude oil prices after Trump said on Tuesday the US was making progress in its efforts to negotiate an end to the war.
Read: Trump approval sinks to 36% as fuel prices surge amid Iran war
“For those reacting to every breaking headline around dialogue between the US and its allies and Iran, including speculation of high-level talks and temporary ceasefire proposals, an element of fatigue is now firmly setting in,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne.
Against the yen, the US dollar was up a slight 0.2% at 158.99, after the release of minutes from the Bank of Japan’s January policy meeting showed many board members saw the need to keep raising interest rates without any specific pace in mind. The Australian dollar weakened 0.33% to $0.697 after the release of inflation data for February, which showed a 3.7% rise prior to the start of the US-Israeli war with Iran, a slightly slower pace than expected by analysts.
Although markets still anticipate no change in US interest rates this year, expectations of policy tightening are rising. Fed funds futures now imply a 26.1% chance of a 25-basis-point hike at the Federal Reserve’s December meeting, compared to a 69.5% probability of a cut a week ago, according to CME Group’s FedWatch tool.
Read More: Global shares skid as oil surge threatens inflation shock
The Fed may need to keep interest rates steady “for some time” before further cuts are warranted, Fed Governor Michael Barr said on Tuesday, noting continued inflation above the Fed’s 2% target and the risks posed by the conflict in the Middle East.
Bond markets rebounded after a volatile week, with the yield on the US 10-year Treasury bond down 3.4 basis points at 4.356%. “Higher oil prices added to expectations of increasing inflationary pressures and tighter monetary policy,” analysts from Westpac wrote.
In cryptocurrencies, bitcoin climbed 1.6% to $71,202.33, while ether was up 1.2% at $2,174.14.
US’ Torrid sees FY25 sales fall 9.4%, reports $7 mn loss
Wristband enables wearers to control a robotic hand with their own movements
UK inflation rate steady in February ahead of Iran war
-
Fashion7 days agoSales at US apparel, clothing accessories stores up 4% YoY in Jan 2026
-
Business1 week agoPeloton is launching bikes and treadmills for gyms, accelerating commercial strategy
-
Tech1 week agoJustice Department Says Anthropic Can’t Be Trusted With Warfighting Systems
-
Fashion1 week agoTrump signs order to combat fraudulent ‘Made in America’ labels
-
Business1 week agoStocks and pound rise as US rate call approaches
-
Fashion1 week agoLenzing launches TENCEL Lyocell-HV100 at Intertextile Shanghai
-
Entertainment7 days agoVal Kilmer revived 1 year after death through AI
-
Sports1 week agoPCB files complaint over allowing Bangladesh to take review on penultimate ball – SUCH TV