Nasdaq hits fresh record as Fed effect boosts US stocks

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NEW YORK (AFP) – The Nasdaq surged to its second straight record Thursday as US stocks again posted strong gains following the Federal Reserve s decision to keep interest rates low.

Apple jumped 0.9 percent and Amazon 1.9 percent, two of the big technology equities that helped lift the Nasdaq to 5,339.52, up 0.8 percent after also hitting a new high on Wednesday.

The Dow Jones Industrial Average finished up 0.5 percent at 18,392.46, while the broad-based S&P 500 gained 0.7 percent to 2,177.18.

“This is a continuation triggered by the Fed meeting,” said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

“Investors are quite convinced that there will be, at most, one rate hike this year and most likely in December.”

Yahoo finished flat, missing the rally that lifted other technology companies, after disclosing that hackers, likely state-sponsored, penetrated its network in 2014, stealing data from some 500 million users.

Dow member Boeing rose 1.0 percent following a World Trade Organization ruling that said the European Union had failed to end illegal subsidies for Airbus.

Boeing said that under the ruling, the United States could levy retaliatory duties against the European Union of up to $10 billion a year. The EU said that it found some of the WTO findings “to be unsatisfactory,” and noted it had the right to appeal the ruling.

Drug maker Mylan rose 1.6 percent after chief executive Heather Bresch defended the company against tough questioning in a congressional hearing on price increases of EpiPens, which are used to counter allergic reactions.

Software company Red Hat jumped 3.9 percent as second-quarter net income rose 14.4 percent to $58.8 million.

2016-09-23

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