BUSINESS US stocks close higher amid data, rate cuts expectations

BUSINESS

US stocks close higher amid data, rate cuts expectations

Xinhua

08:54, June 07, 2019

NEW YORK, June 6 (Xinhua) - US stocks closed higher on Thursday as investors were digesting the latest economic data while continuing to expect the central bank to cut interest rates in the near future.

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File photo: VCG

The Dow Jones Industrial Average increased 181.09 points, or 0.71 percent, to 25,720.66. The S&P 500 rose 17.34 points, or 0.61 percent, to 2,843.49. The Nasdaq Composite Index rose 40.08 points, or 0.53 percent, to 7,615.55. 

On the economic front, the number of Americans filing applications for unemployment benefits was unchanged last week.

In the week ending June 1, the advance figure for seasonally adjusted initial claims was 218,000, unchanged from the previous week's revised level, the Labor Department said on Thursday.

The previous week's level was revised up by 3,000 from 215,000 to 218,000.

The 4-week moving average was 215,000, a decrease of 2,500 from the previous week's revised average. The previous week's average was revised up by 750 from 216,750 to 217,500, said the department.

Investors have grown more confident in the past few days that the central bank will lower its benchmark interest rates to facilitate economic expansion.

Federal Reserve Chairman Jerome Powell said Tuesday that the Fed is watching current economic developments and will do what it must to keep the near-record expansion going.

He said while the Fed does not know how or when the issues involving trade negotiations and other matters will be resolved, the central bank is closely monitoring the implications of these developments for the US economic outlook.

The central bank released its latest beige book on Wednesday, saying the US economy expanded at a "modest pace" overall from April to mid-May.

Nearly all districts reported some growth, but there were indications of uncertainties, with some regions citing a slowdown in manufacturing, higher input costs led by tariff increases, and struggles in agriculture.

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