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Wall Street closed green with increased optimism

The US market closed in the green, with tech being the hero of the day. Banking re-assured traders with rising stock prices.

A rise in tech pulled Wall Street to the green

The S&P 500 rose on Wednesday, propelled by a Micron-led rise in technology and additional indications of easing banking sector concerns. The S&P 500 increased by 1.1%, while the Dow Jones gained 0.8%, and the Nasdaq increased by 1.5%. The US 10-year Treasury yield remained flat today.

Micron Technology Inc soared more than 7%, driving chip equities and the overall tech sector higher. This was following the chipmaker’s better-than-forecast earnings and optimistic comments on a bottom in chip demand. Other chip equities were also encouraged, with Intel, Lam Research, and Marvell Technology all gaining more than 7%.

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Also following earnings today, Lululemon Athletica Inc rose 13% when the athletic apparel company posted quarterly earnings that surpassed Wall Street’s expectations. This was due to a surge in demand and a decrease in stockpiles.

Regional banks such as First Republic Bank, Lincoln National Corporation, and Zions Bancorporation led the banking advance, all rising by around 7%. These rises are confirming that fears of contagion continue to subside.


First Republic Bank chart, source:

The dollar has finally returned to the playing field

The dollar strengthened against the majority of its main counterparts on Wednesday, reversing some of its recent losses, and gaining significantly against the volatile yen. The Japanese currency is easing, as the end of Japan’s fiscal year arrives. The dollar was 1.37% higher at 132.71 yen.

The dollar index, which compares the dollar to six other currencies, rose 0.18% on the day to 102.67, pushing clear from the close to two months low of 101.91 reached late last week. The Australian dollar fell 0.48% to $0.6677 after the Australian CPI declined to an eight-month low. This bolstered the case for the Reserve Bank to halt its rate hike drive next week.

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The Canadian dollar was 0.2% higher against the greenback, on track for its third consecutive green day. The loonie rose after Bank of Canada Deputy Governor Toni Gravelle stated that the bank is prepared to help the banking sector if it comes under severe stress. Gravelle also expressed that BoC is not at all concerned about the current state of the financial system.

Commodities closed without a significant change

The weekly inventory of US crude decreased by the largest amount in the past four months, which is a bullish indicator. The price of crude, however, decreased slightly on Wednesday, according to these news articles. This indicated that the two-day market rally may have been excessive in the eyes of some.

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WTI crude closed at $72.97, which is 0.3% lower for the day. Between Monday and Tuesday, the benchmark for US petroleum increased by nearly 6%. Brent crude closed at $78.28, 0.5% in the red, after gaining nearly 4% over the previous two trading days.

Gold futures subsided with the raising dollar and market optimism. The flat Treasury yields also haven’t put much fuel to the fire. The June contract for the yellow metal closed at $1982, which is 0.43% in the red. Silver was able to hold on to a green end, closing 0.14% in the green.

Tomáš is a financial reporter with US markets as his main field. Tomáš is an aspiring author and entrepreneur aspiring to help people get better in financial knowledge.


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