ALBAWABA - U.S. indices closed with slight gains amid conflicting statements from Federal Reserve officials regarding future monetary policy. Federal Reserve Bank Chair Christopher Waller expressed increasing confidence that the current interest rate level is sufficiently restrictive, hinting at the possibility of a rate cut in the coming months if inflation continues to approach the Fed's 2% target.
On the other hand, Federal Reserve Bank Governor Michelle Bowman's remarks suggested that another interest rate hike might be necessary to curb inflation at the right time.
Key U.S. index performances include the Dow Jones rising approximately 0.2%, closing above 35,400 points for the first time in about four months. The Nasdaq Composite increased by around 0.3%, and the S&P 500 saw a modest uptick of less than 0.1%, holding above 4,550 points at the close.
Eight of the eleven major sectors in the S&P 500 ended in positive territory, with the Consumer Discretionary sector leading the gainers and the Healthcare sector topping the losers.
The trading volume on U.S. exchanges reached around 10 billion shares, compared to the 20-day average of 10.4 billion. Boeing shares rose by 1.4%, reaching their highest levels in three months, adding approximately $2 billion to the company's market value in a single day. This surge followed a Canadian RBC bank upgrade to "Outperform," raising the price target to $275 from $200 per share.
In another notable move, Pinduoduo (PDD) shares soared by about 18% to their highest levels in 30 months, adding around $28 billion to the company's market capitalization in a single day. This surge exceeded expectations after the Chinese e-commerce company reported a 94% year-on-year revenue increase to $9.6 billion in the third quarter.
Analysts anticipate that Pinduoduo's Temu program, launched in September last year and now available in 48 countries, including Europe and the Middle East, will generate revenues exceeding $16 billion this year.
