A better-than-expected assessment of fourth-quarter economic growth contributed to a rise in US equities, headed by tech firms. Better-than-expected earnings from Tesla boosted the market.
Recent price reductions, according to the manufacturer of electric vehicles, have increased the product’s popularity but the company acknowledges that future economic conditions will be hard. The price of Tesla stock increased by 9%.
The Dow Jones was up 46 points, or 0.1%, meanwhile S&P 500 was up 0.4% and the Nasdaq was up 0.8%. Comparing the fourth quarter to the third quarter, economic growth slowed, indicating that the Federal Reserve’s aggressive interest rate hikes last year are bearing fruit.
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In the final quarter of the year, the gross domestic product increased by 2.9%, which exceeded estimates but was slower than the 3.2% recorded for Q3.
However, the job market stays strong despite recent layoffs by a number of prominent technological companies.
The Fed will gather next week to determine the next move for hikes, and it is widely anticipated that it will raise rates by another quarter-point, a lower increase than at its prior sessions.
Dollar rallies against all of its major rivals
During Thursday’s US business hours, the EUR/USD exchange rate lost momentum and fell below 1.0900. The optimistic macro data announcements from the States appear to be bolstering the US dollar versus its rivals and putting pressure on the pair.
In the second part of Thursday’s trading session, GBP/USD came under negative pressure and fell below 1.2350. It is hard for the pair to add to Wednesday’s gains due to the continued strength of the US dollar amid mixed risk sentiment and solid US statistics.
The AUD/USD fell from its highest level since June, as the US dollar gained impetus. The pair reached a high of 0.7141 before retreating. It is hanging at the daily lows near 0.7080. After four straight days of gains against the US dollar, the Australian dollar is poised for its first daily decline.
Commodities close mixed
Thursday’s Gold price reached a bottom of $1,918.69 as the US currency strengthened. Rising US Treasury Bond rates also increased the potential cost of holding gold. United States 10-year bond yielded 3.52% at its highest point of the day. Futures for silver for March delivery finished 0.3% higher.
Oil prices increased by more than 1% on Thursday due to predictions that worldwide demand will grow as a result of China’s economic reopening and encouraging US economic statistics. Brent futures jumped $1.18, or 1.4%, to $87.30 per barrel, and US West Texas Intermediate (WTI) oil advanced $1.12, or 1.4%, to $81.27 per barrel.