Published: Thu, September 21, 2017
Economy | By Annette Adams

How major USA stock market indexes fared Tuesday

How major USA stock market indexes fared Tuesday

The broad-based S&P 500 also finished at a record, rising 0.1 percent to 2,508.24, while the tech-rich Nasdaq Composite Index shed 0.1 percent to 6,456.04.

Investors also weighed new data on the USA housing market that showed sales of previously occupied homes fell 1.7 percent in August.

INVESTOR INSIGHT: "The Fed's seemingly hawkish views on sustained lift-off in USA interest rates may be seen as a form of pressure for regional equities and could dampen prices today", said Jingyi Pan, market strategist at IG in Singapore.

The US central bank, which begins its two-day meeting on Tuesday, is widely expected to announce on Wednesday that it will begin paring its bond holdings, with reductions likely to start in the coming months.

"The risk for the FOMC (Federal Open Market Committee) in the balance sheet is in how it moves credit - particularly the Mortgage Backed Security market". The Dow Jones industrials added 41 points, or 0.2 percent, to 22,412.

Energy stocks jumped 2.5 percent as the sector profited from higher oil prices after Iraq's oil minister suggested more output cuts were possible.

Verizon and AT&T also rose more than 2 percent, lifting the S&P higher.

MSCI's World index, which tracks stocks in 46 countries, was up 0.1 percent and hit another record, while U.S. Treasuries prices gained slightly. After leaving its benchmark rate at a record low for seven years after the 2008 crisis, the Fed has modestly raised the rate four times since December 2015 to a still-low range of 1 percent to 1.25 percent.

In other company news, NVIDIA (NVDA) climbed 5.1% after Bank of America Merrill Lynch boosted the price target on the shares to $210, while maintaining a buy rating. Japan's Nikkei 225 Index inched up by 0.1 percent, while Australia's S&P/ASX 200 Index dipped by 0.1 percent.

The dollar rose to 111.50 yen from 111.47 yen on Monday.

Benchmark U.S. crude added 93 cents, or 1.9 percent, to settle at $50.41 a barrel on the New York Mercantile Exchange. Brent crude, used to price global oils, gained 24 cents to $55.38 per barrel in London.

Telecom stocks are seeing notable strength, however, with the NYSE Arca Telecom Index climbing by 1.1%. JPMorgan Chase (JPM) advanced 1.2% and Goldman Sachs (GS) increased 1% to be among the top gainers on the Dow. Natural gas declined 3 cents to $3.09 per 1,000 cubic feet. The FTSE 100 index of leading British shares was stable at 7,272. Australia's S&P/ASX 200 edged down 0.1 percent, while South Korea's Kospi lost almost 0.1 percent.

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