Connect with us

Hi, what are you looking for?


Wall Street climbs on recovery optimism

NEW YORK, Sept 22 – US shares climbed on Tuesday to around fresh 11-month highs on economic recovery optimism and company earnings prospects ahead of a Federal Reserve policy level meeting and Group of 20 summit.

The Dow Jones Industrial Average rose 40.88 points (0.42 percent) to 9,819.74 in opening trades, a day after falling slightly due to profit taking.

The tech-heavy Nasdaq composite rose 10.29 points (0.48 percent) to 2,148.33 while the broad-market Standard & Poor\’s 500 index added 5.96 points (0.56 percent) to a new 11-month high of 1,070.62.

"Wall Street appears to have shaken off Monday\’s blues in favor of a more upbeat outlook on the economy, even as the Federal Open Market Committee (FOMC) kicks off its meeting to discuss US monetary policy," said Joseph Hargett of Schaeffer\’s Investment Research.

The added confidence, he said, had pressured the safe-haven US dollar lower, pushing greenback-priced commodities such as oil and gold higher.

"The dollar’s continued weakness is boosting commodity prices that are denominated in the US currency, helping the major markets rebound from yesterday’s modest declines," analysts at Charles Schwab & Co said in a note to clients.

Upbeat company earnings reports were also helping lift sentiment in early action, they said.

The two-day FOMC meeting begins in Washington Tuesday and the Group of 20 summit convenes in the US city of Pittsburgh, Pennsylvania, on Thursday.

The Fed is widely expected to leave unchanged its near-zero base interest rate but may make minor changes to the array of liquidity programs to keep credit flowing as the economy struggles to emerge from recession.

Advertisement. Scroll to continue reading.
Also Read:  Former Deutsche Telekom boss implicated in spy scandal: report

Leaders of the G20 key developed and developing countries are expected to discuss ways to unwind their unprecedented support to fight the global economic crisis although they remain cautious for fear of jeopardizing a return to growth.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...