US shares end with solid gains on positive data
Wall Street equities finished with solid gains on Thursday, boosted by upbeat economic data and despite more Federal Reserve officials repeating the message that interest rates will continue to rise to combat inflation Shares opened higher and remained in the green throughout the trading session, as the Dow Jones gained 1.0 percent to finish the day at 33,291. The S&P 500 jumped 1.4 percent to close at 4,199, while the Nasdaq increased 1.7 percent to 12,639. Federal Reserve Chair Jerome Powell's speech on Friday to the annual central banking symposium in Jackson Hole, Wyoming has been the focus of attention all week. Nick Reece of Merk Investments said markets seem to have come around to the idea that Powell will stick to his guns on the inflation message. "Powell probably isn't going to say anything unexpected," he said, which means "the market can have a relief rally." He also noted the positive economic data as a factor in the day's gains. Government reports showed initial applications for unemployment benefits unexpectedly fell last week, dispelling concerns about a weakening job market, while GDP in the second quarter contracted by 0.6 percent, much less than first reported. Before Powell's speech, markets on Friday will get a look at the Fed's preferred inflation index, which like CPI is expected to show a dramatic slowdown in July due to falling petrol prices. But economists say Powell will reiterate that the Fed will keep raising interest rates until prices are trending decidedly lower. (AFP)