Dow crosses 17,000 for first time in weeks – New York Report
Signs of dovishness in the Federal Reserve September meeting minutes which shed light on its decision to keep interest rates near zero helped to maintain an upward momentum in US stock markets.
The Dow Jones industrial average rose 137.86 points, or 0.82 per cent, to 17,050.15, the S&P 500 gained 17.56 points, or 0.88 per cent, to 2,013.39.
It was the first time since 19 August that the Dow had closed above 17,000.
The Nasdaq Composite added 19.64 points, or 0.41 per cent, to 4,810.79.
The index still remained below its 50-day moving average, underperforming the other major indexes as Apple closed down about 1.2 per cent.
The iShares Nasdaq Biotechnology ETF (IBB) closed down 0.2 per cent after falling more than 3 per cent.
The September Fed meeting minutes indicated that policymakers were concerned about inflation and slower global growth.
“I think you got a little more clarity on what the Fed was thinking. The decision to not raise rates was more collaborative than people thought. The call really wasn’t that close,” said Peter Coleman, head trader at Convergex. He added the minutes showed the Fed was still concerned about not reaching its inflation target.
Netflix recovered from a decline to surge more than five per cent on news that the streaming giant will hike prices on the standard plan by $1 a month to $9.99.
Railway stocks also saw significant strength on the day, resulting in a 2.1 per cent gain by the Dow Jones Railroads Index.
American Railcar led the sector higher, surging 19.4 per cent.