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On Wall Street, new records, the economy strengthens

On Wall Street, all major indices reached record levels for the third consecutive day on Wednesday as new data confirmed the continued stable growth of the U.S. economy.

The Dow Jones strengthened by 0.09 percent to 22,661 points, while the S&P 500 rose by 0.12 percent to 2,537 points, and the Nasdaq index increased by 0.04 percent to 6,534 points.

>>>On Wall Street, new records, the economy strengthens

The positive sentiment on the world’s largest stock exchange is attributed to further signs of stable growth in the U.S. economy.

After recent data indicated an acceleration in activity in the manufacturing sector, a report released yesterday showed that service sector activities rose the most in 12 years last month.

Analysts say this indicates that the economy is strong enough to withstand a new increase in interest rates, alleviating concerns that the U.S. central bank might raise the cost of money for the third time this year in December.

Additionally, investor hopes for tax reform, which would reduce the tax burden on most Americans and could strengthen consumption, positively influence the market.

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However, the rise in indices yesterday was tempered by a decline in stock prices in the energy sector, a result of falling oil prices after a strong increase in the previous quarter.

The S&P technology sector index also slightly fell yesterday, for the first time after seven days of continuous growth.

– Recent macroeconomic data shows that economic activities are improving both in the U.S. and globally, which should positively impact corporate earnings, says Paul Nolte, portfolio manager at Kingsview Asset Management.

The earnings season for companies is about to begin, and analysts in a Reuters survey estimate that earnings for companies in the S&P 500 index rose by 5.5 percent in the last quarter compared to the same period last year, while they recorded growth of over 12 percent in the second quarter.

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On most European exchanges, stock prices slightly fell yesterday. The London FTSE index weakened by 0.01 percent to 7,467 points, while the Paris CAC fell by 0.08 percent to 5,363 points. The Frankfurt DAX, on the other hand, strengthened by 0.53 percent to 12,970 points.