The S&P 500 Index closed at a record high on Thursday as bond yields rose delivering stellar profits to investors. S&P 500 reached a 52-week high of 4,995 rising 40 points in the indices. It spiked close to 1% in the charts as strong earnings beat expectations this week. The bond yields rose after the Federal Reserve officials reaffirmed expectations that the Central Bank will not cut interest rates. This will be the fourth time in a row that the Feds have paused cutting interest rates.
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The broader U.S. markets performed exceptionally well this week as the Dow Jones Industrial Average rose 156 points on Wednesday. Simultaneously, the Nasdaq Index spiked close to 150 points delivering stellar profits to both near and long-term investors. Also, the S&P 500 outpaced gold and oil prices on Wednesday becoming the top earner in the U.S. markets.
The U.S. equity markets had the best week as stocks climbed to new weekly highs due to the high yields. The S&P 500 closing to the highest ever has brought in fresh optimism in the U.S. markets.
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U.S. Dollar Dips as S&P 500 Ends On a High
The U.S. dollar dipped in the DXY Index falling close to 104.1 from a high of 104.8. The charts show a slight dip for the U.S. dollar this week but despite the downturn, it outperformed other currencies. Local currencies such as the Chinese Yuan, Japanese Yen, and the Indian Rupee are dipping against the U.S. dollar.
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The development puts the U.S. dollar in a stronger position despite it losing out to the S&P 500 Index. The growth comes at a time when the Asian markets, especially China’s Hang Seng index are struggling in the indices. China’s stock market is on the brink of a crash after the Evergrande fallout. Read here to know why China’s stock market could soon experience a bloodbath in the charts.