NEW YORK (awp international) – US stock markets largely shook off small early losses on Tuesday. Recently, the most important stock indices have not changed. Investors’ optimism about interest rate cuts continued to weigh somewhat on sentiment.
The leading Dow Jones Industrial Average rose 0.11 percent to 42,977.18 points. The benchmark S&P 500 was slightly lower at 5,853.48. Both stock market barometers had hit record highs in the previous week. The Nasdaq 100 index of tech stocks rose 0.12 percent to 20,386.74 points.
Investors lowered their interest rate expectations after central bank members said they wanted a slower pace of rate cuts, trade sources said. The current rally in equity markets is based on hopes that key interest rates will soon come down to boost the economy. Because low interest rates make investments and loans cheaper.
In addition, the inflationary impact of Republican Donald Trump’s presidential election victory in two weeks is weighing on markets, as his promised tax cuts and trade tariffs could eventually lead to higher interest rates.
Meanwhile, the corporate reporting season picks up pace. Telecom giant Verizon gained more new customers than expected in the third quarter, while sales stagnated. The latter disappointed investors, causing shares to close 4.6 percent lower on the Dow.
Shares of 3M have lost nearly five percent of early gains and recently fell 1.6 percent. The conglomerate raised its profit forecast again after an unexpectedly good quarter. Investors have now cashed out the stock certificates that have performed well in recent months.
At the top of the S&P 500, General Motors shares rose 9.7 percent. After the third quarter of the year, the car giant is a little more optimistic about its profit target for the full year given the continued high sales prices.
Behind them, shares of Philip Morris rose more than nine percent. The tobacco company beat expectations with its adjusted earnings per share.
By contrast, the engine maker’s rising quarterly profit and increased annual targets weren’t enough for investors in GE Aerospace: Shares fell 8.5 percent.
Laboratory supplier Danaher beat market expectations based on sales and operating results in the third quarter. However, investors took some offense at the company for not raising its forecast despite good growth. This means share certificates have lost more than three percent./la/he
