The records are made to be broken, which is the same case we are witnessing with the SP 500 index for the past few months where new record levels are made every now and then and are broken. The S&P 500 index rose to another all time high level of 1856 level after it broke the previous resistance levels at 1844.
On the other hand, the Dow Jones Index managed to gain 175 points within a day, after which it marked a new level of 16279 after this 1.1% increase.
The health care companies contribute to Wall Street massively, where investors keep a very close eye on the activities in which these companies remain involved. Similarly, the healthcare companies cut the Medicare rates less than expected, hence allowing the stocks to shoot up. Moreover, the renowned investor Carl Icahn – who previously shook some moves in the market – ‘urged the restructuring of PayPal’s unit’ where EBay Inc. also advanced its stock prices as Carl Icahn suggested for the stock splits for the online marketplace. The investors surely enjoyed the 3.2% gain within a day and that too on the start of a new week.
Backing the stimulus cut. Yes, this is what we are currently witnessing from the Chair of Fed and as well as the FOMC members even though the economic indicators are not coming out to the expectations. She said that the economy is in a good shape and has strengthened fairly up to the level where it could bear with the stimulus cuts being made, hence these comments simply added up to the level of confidence of the investors.
Moreover, in the group of 20 nations she was also praised over the smooth reduction in the bond buying that is leading to positive outcomes where only certain notable change in the outlook would draw the attention of the FED to slow down the pace of the tapering, or else it is all fine.
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