Asian stocks rose and US futures rose on Thursday after President Joe Biden gave a speech to Congress to outline an ambitious plan to generate spending on early childhood education, childcare and other public services. did.
Investors have been on the sidelines prior to the release later that day US growth data January-March quarter. Gross domestic product readings exceed 5% and could accelerate by more than 10% in the current April-June quarter. This is because stagnant demand encourages spending.
Stock prices rose in Hong Kong, Shanghai, Seoul and Sydney. Bond yields were stable as oil prices rose.
Wall Street Benchmark slipped after Wednesday Federal Reserve He said he kept key interest rates close to zero, keeping in mind the recent economic improvements.
In his speech on Wednesday night, the president checked some details of him. $ 1.8 trillion plan We spend our time expanding preschool education, creating national family and medical leave programs, and distributing childcare subsidies.
The plan follows his proposal to spend $ 2.3 trillion on rebuilding roads and bridges, expanding broadband access, and launching other infrastructure projects.
The future of the 30 Dow Jones Industrial Averages rose 0.4% and the future of the S & P 500 rose 0.6%.
In Asian trade, the Japanese market was closed due to holidays. Hong Kong’s Hang Seng Index rose 0.6% to 29,245.26 and the Shanghai Composite Index rose 0.3% to 3,465.98. In Seoul, the Kospi rose 0.1% to 3,184.78. Australia’s S & P / ASX 200 was up 0.4% to 7,082.80.
In the latest policy update, the US central bank has lowered benchmark short-term interest rates to near zero and lowered lending rates to encourage borrowing and spending since the pandemic broke out almost a year ago. He said he would continue to buy $ 120 billion in bonds each month to keep long-term borrowing rates low.
Yields on 10-year government bonds, which affect mortgage and other consumer loan rates, were eased following a Fed statement, dropping from 1.62% at the end of Tuesday to 1.61%.
After the release at 2:00 pm Eastern Standard Time, stock prices initially surged. Statement of the Federal Reserve Board.
The S & P 500 fell 3.54 points to 4,183.18. The benchmark index hit a record high on Monday. The Dow Jones Industrial Average fell 0.5% to 33,820.38. Nasdaq, which makes heavy use of high tech, gave up 0.3% to 14,051.03.
SME stocks worked better than large companies. The Russell 2000 Index rose 0.1% to 2,304.16.
Wall Street has been largely in the last few weeks as the introduction of the COVID-19 vaccine, massive support from the U.S. government and the Federal Reserve Board, and a series of encouraging economic data have boosted expectations for a stronger economy. It is rising and the stock index is at a record high. Steady corporate profit growth this year.
Strong rebounds in oil, timber and other commodities and expectations of higher prices also spurred concerns about the outlook for inflation and high interest rates. These concerns have boosted bond yields.
The Federal Reserve Board said in its statement that the economy and job markets had been “strengthened”, admitting that inflation had risen, but that the central bank saw the rise as temporary. It was. 2% annual inflation target before considering rate hikes.
Investors also focused on corporate profits on Wednesday, with dozens of companies reporting quarterly results.
Google parent company, Alphabet increased 3% after announcing that profits doubled year-on-year. After reporting strong financial results, visas rose 1.5%.
Google’s solid profits helped send telecommunications stocks higher. Oil prices have risen, pushing up energy companies’ inventories, while technology and healthcare companies have fallen.
Investors have punished several other companies with inadequate results. Boeing Spotify fell 2.9%, while Spotify fell 12.3% after music streaming companies announced that subscriber growth slowed more than expected.
Biotechnology company Amgen was one of the biggest losers. First-quarter profits and revenues fell 7.2% after falling below analysts’ expectations.
Facebook After the announcement of the latest earnings after Closing Bell, after-hours trading rose 5.5%. Apple The company’s profits surged in the last quarter due to increased iPhone sales, after which it added 3.3% in extended transactions.
In another Thursday transaction, electronic trading on the New York Mercantile Exchange saw benchmark US crude rise 18 cents to $ 64.04 a barrel. It was up 92 cents to $ 63.86 on Wednesday. The international standard Brent crude was $ 66.97 a barrel, up 19 cents.
The US dollar was flat at 108.61 yen. The euro rose from $ 1.2128 to $ 1.2135.