Overseas Market Report
US stocks have closed mixed, with the Nasdaq gaining on the strength of tech stocks while the S&P 500 was little changed as it marked its longest bull market run. The legal woes of two former advisers to US President Donald Trump contributed to investors’ caution, while the release on Wednesday of the Federal Open Market Committee’s minutes from its last policy meeting had only a fleeting impact on Wall Street’s major indexes.
US central bankers discussed raising interest rates soon to counter excessive economic strength but also examined how global trade disputes could batter businesses and households. Energy stocks rose 1.2 per cent as oil prices jumped, while retailers gained after Target and Lowe’s announced quarterly results. The biggest boost to the S&P 500 came from technology stocks, which advanced 0.5 per cent.
Former Trump campaign manager Paul Manafort was found guilty of tax and bank fraud charges on Tuesday evening, while Trump’s former personal lawyer Michael Cohen pleaded guilty to a range of charges and said he acted at the direction of Trump. Investors are considering whether the twin setback will hurt the Republican Party’s election prospects and widen a criminal probe that has overshadowed Trump’s presidency. “There was quite a lot of news that was negative for Trump yesterday that introduced uncertainty into the market,” said Robert Phipps, director at Per Stirling Capital Management in Austin, Texas.
The Dow Jones Industrial Average on Wednesday fell 88.69 points, or 0.34 per cent, to 25,733.6, the S&P 500 lost 1.14 points, or 0.04 per cent, to 2,861.82 and the Nasdaq Composite added 29.92 points, or 0.38 per cent, to 7,889.10.
Morning Market Note - Thursday 23rd August