JABAR EKSPRES – Stocks on Wall Street were mixed in late trading Thursday (Friday morning WIB), as new economic data showed that U.S. growth remains resilient and the nation’s largest lenders passed the Federal Reserve’s annual stress tests.
The Dow Jones Industrial Average lifted 269.76 points, or 0.80 percent, to settle at 34,122.42 points. The S&P 500 Index added 19.58 points, or 0.45 percent, to end at 4,396.44 points. The Nasdaq Composite Index fell 0.42 points, to close at 13,591.33 points.
Eight of the 11 major S&P 500 sectors ended in the green, with the financials and materials sectors leading the gains, up 1.67 percent and 1.27 percent, respectively. Meanwhile, the communication services and consumer staples sectors led the decliners with 0.63 percent and 0.15 percent losses, respectively.
While higher government bond yields dragged on the tech-heavy Nasdaq Composite, cyclical stocks or stocks whose movements are influenced by macroeconomic conditions performed well and led the Dow to close 200 points higher on Thursday (6/29).
Read more: Oil Rises Amid Continued Support of “Bullish” US Stocks
Big-name banks were lifted Thursday after passing the Fed’s annual stress test, in which 23 banks proved they had enough capital to absorb losses of more than $540 billion. Regulators said Wednesday that the 23 largest lenders passed a severe hypothetical global recession in the stress test.
Goldman Sachs and JPMorgan Chase each rose more than 3.0 percent, while Wells Fargo rose about 4.5 percent. Several other financial stocks that were dragged down during this year’s banking crisis also gained, including Western Alliance and Zions Bancorporation.
Investors also digested a number of positive economic data showing a resilient economy and a strong labor market. Some analysts believe these releases may ease recession fears, but raise expectations for further interest rate hikes.
The US gross domestic product (GDP) growth rate was revised up to 2 percent in the first quarter, up from the previous estimate of 1.3 percent, referring to data released by the US Bureau of Economic Analysis on Thursday (6/29). This is the third and final estimate for the period, reflecting upward revisions to exports and consumer spending.
