Wall Street Stocks Rise as Dow Jones Industrial Average Hits All-Time Closing High

The latest updates on the FTSE 100 and London’s financial markets from City A.M.’s newsroom in the heart of the City of London.

Wall Street stocks rose on Tuesday and the Dow Jones Industrial Average hit an all-time closing high after US retail sales data supported the view the Federal Reserve is approaching the end of its easing cycle.

The Dow Jones Industrial Average closed up 753.43 points, or 1.85 per cent, at 40,954.48, while the S&P 500 rose 36.03 points, or 0.64 per cent, to 5,667.2.

The Nasdaq Composite edged up 37.34 points, or 0.2 per cent, to 18,509.34.

The Russell 2000 index marked its fifth straight day of gains over 1 per cent, notching its longest winning streak since April 2000. The small-cap index rose 2.2 per cent to 3,244.07.

UnitedHealth Group jumped 6.5 per cent after posting higher-than-expected profits, pushing both the Dow and the S&P 500 Health Care index to record highs.

Bank of America’s second-quarter profits beat forecasts, largely driven by a rise in underwriting fees as capital markets activity picked up.

The bank’s upbeat outlook on net interest income lifted its shares by 5.3 per cent.

Despite Morgan Stanley’s disappointing wealth management revenue, its shares rose 0.9 per cent as strong trading and investment banking fees helped the bank beat overall profit estimates.

In overnight markets, Hang Seng futures gained 0.6 per cent, while Japan’s Topix futures rose 0.5 per cent. In Australia, the S&P/ASX 200 futures edged up 0.2 per cent.

In commodities, gold remained steady after a nearly 2 per cent rally on Tuesday, hitting a record $2,469.66 per ounce. Spot gold was trading at $2,468.16 per ounce by 06:18 ET (10:18 GMT).

Meanwhile, West Texas Intermediate oil stayed mostly unchanged following its third consecutive decline on Tuesday.

The US crude slipped 0.04 per cent to $111.04 a barrel, while Brent crude futures rose 0.22 per cent to $114.03 a barrel by 06:16 ET (10:16 GMT).

Bitcoin prices rose 1.9 per cent to $65,917 per token.

Today, the newly appointed Prime Minister of Britain, Keir Starmer, will introduce his initial batch of proposed legislation.

The King’s Speech, a ceremonial event where the government’s agenda is presented by the monarch in parliament, is scheduled for 1030 GMT and is renowned for its formal traditions and ceremonial grandeur.

New Zealand’s annual inflation dropped to 3.3 per cent from 4.0 per cent in the previous quarter, coming in slightly lower than the 3.4 per cent rise anticipated by economists.

However, the inflation rate remained above the central bank’s target band of 1-3 per cent.

As a result of this softer inflation data, New Zealand’s stock market saw a boost, with shares hitting their highest level in over two years on Wednesday.

Donald Trump announced he won’t remove Federal Reserve Chair Jay Powell before his term ends in 2026, easing concerns about potential disruptions in the central bank’s leadership.

In an interview with Bloomberg on Tuesday, Trump confirmed Powell would serve his full term.

This morning, before the market opens, investors will be keeping a close eye on the UK consumer and producer price data as the Bank of England approaches its next monetary policy decision.

In China, the Third Plenum is the key event this week, running from Monday to Thursday in Beijing.

In the US, the second-quarter earnings season is in full swing, with major companies like Netflix and several airlines set to release their reports.

Additionally, important economic updates are on the horizon, including the European Central Bank’s rate decision, which is expected to stay the same but may provide guidance for the future.

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