Wall Street rallies in risk on environment ahead of Fed
|- Wall Street rallied in a risk on environment ahead of the Federal Reserve (Fed).
- Nasdaq Composite Index COMP added 108.86 points, or 1.4%, at 7,953.88.
- The Dow Jones Industrial Average DJIA, +1.35% rose 353.01 points, or 1.4%, at 26,465.54.
- The S&P 500 index added 28.08 points, or 1%, at 2,917.75.
The U.S. benchmarks rallied on Tuesday, bolstered by the optimism of a trade deal between the US and China as well as prospects for easier monetary policy in both Europe and the US. The S&P 500 closed within 1% of its record close on April 30 at 2.945.83. The finish for all three benchmarks represented the highest closes since at least May 7th. The Dow Jones Industrial Average DJIA, +1.35% rose 353.01 points, or 1.4%, at 26,465.54, putting the benchmark within 1.4% of its Oct. 3 all-time closing high. The S&P 500 index added 28.08 points, or 1%, at 2,917.75, placing the index within 1% of its April 30 record at 2,945.83, while the Nasdaq Composite Index COMP added 108.86 points, or 1.4%, at 7,953.88.
US data
Analysts at ANZ Bank noted that the US May housing starts fell 0.9% m/m vs expectations of a 0.3% gain. "However, the April release was revised up, leaving the aggregate level as expected. Housing demand has shown some signs of benefitting from lower interest rates recently but concern over higher tariffs on building imports from China has dampened sentiment amongst home builders."
DJIA levels:
The technical outlook for the DJIA has switched to bullish again following a number of sessions moving sideways and consolidating above the 61.8% Fibo retracement level of April to June swing highs and lows. The 78.6% mark in the 26200s with a confluence of the 12th April gap was a key upside objective which has been breached. Eyes can turn up towards 27000 psychological level. However, on the flip side, the 25200 level comes in around the 11th March swing lows. 25000 guards a run towards 24500s and then 50% of the upside run made at the end of Dec at 24150.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.