Dow Jones jumps 1%, Nasdaq 2% as Fed remarks calm higher-for-longer rate woes; Apple shares $5 stronger
Dow Jones, S&P 500, Nasdaq on March 3, 2023: The three main US stock market indices — the Dow Jones, the S&P 500 and the Nasdaq Composite — strengthened 1-2 per cent each on Friday after remarks from Fed officials calmed fears among investors over red-hot inflation and higher-for-longer interest rates.
Dow Jones, S&P 500, Nasdaq futures: The three main US share market indices — the Dow Jones, the S&P 500 and the US megacap tech stocks-heavy Nasdaq Composite — surged on Friday, following gains across other major global peers, after remarks from Fed officials eased investors' fears about sticky red-hot inflation and higher-for-longer interest rates. US tech stocks staged strong moves, with Apple shares finishing the day stronger by $5 apiece.
How S&P 500, Nasdaq, Dow Jones fared on March 3, 2023
Here's how the Dow Jones, the S&P 500 and the Nasdaq Composite finished Friday's session:
- Dow Jones: up 387.4 — or 1.2 per cent — at 33,391
- S&P 500: up 64.3 pts — or 1.6 per cent — at 4,045.6
- Nasdaq Composite: up 226 pts — or two per cent — at 11,689
Global share market update
Shares across Europe and Asia staged strong gains on Friday — including a 900-point surge in Sensex and a leap above the psychologically important 17,500 mark in Nifty50 amid a market-wide rally. The pan-European Stoxx 600 index finished 0.9 per cent higher earlier in the day driven by interest rate-sensitive tech stocks.
MSCI's All Country World Index — aimed at capturing all of the the world's equity action as a whole — rose 1.3 per cent.
US share market: Key triggers on March 3
Investors entered the session with two main triggers on their watchlist:
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A private PMI reading for services activity in the US
The PMI survey showed steady demand for services in the US with activity rapidly gathering momentum.
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Comments from Fed officials Lorie Logan and Raphael Bostic
Dallas Federal Reserve President Lorie Logan said the US government securities market remains vulnerable to significant shocks that could cause broader damage, and authorities must push ahead with efforts to shore up the financial system.
"Slow and steady is going to be the appropriate course of action," Atlanta Fed President Raphael Bostic said.
The comments from both led to a decline in US Treasury bond yields.
All sectors in the S&P 500 universe finished the day in the green, with the technology, consumer discretionary and communication services sectoral gauges leading the pack with gains of more than two per cent each.
Apple share boost
Apple shares ended higher by $5.1 or 3.5 per cent at $151 apiece, within 10 cents of their intraday high, after Morgan Stanley said the stock could rally over 20 per cent in 2023.
(With inputs from agencies)
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