Wall Street and European stock markets reached new heights on Wednesday, with the S&P 500 closing at a record high and the yen hitting a 34-year low against the dollar before rebounding. The S&P 500 finished at 5,248.49, up 0.9 percent, marking a new milestone for the index which has seen a more than 10 percent increase this year.
Analysts attribute the market’s positive performance to “window dressing,” a practice where money managers add shares to their portfolios to meet equity requirements at the end of a quarter. Despite concerns about Friday’s release of the Federal Reserve’s inflation index, investors remain optimistic about further gains in the market.
While US markets will be closed on Friday, attention is also on the European markets, with the Frankfurt DAX rising to a new record high and Paris also closing at a record level. However, Hong Kong and Shanghai experienced declines, while Tokyo stocks rallied due to a drop in the yen.
The Japanese currency fell to 151.97 against the dollar after the Bank of Japan signaled its commitment to loose monetary policy following a recent interest rate hike. This weaker yen benefited exporters and boosted Tokyo’s Nikkei stocks index, making it the best performer in Asia.
Finance Minister Shunichi Suzuki emphasized the government’s vigilance in monitoring market movements and readiness to take action against excessive fluctuations in the currency. Overall, global markets showed mixed results with various key figures around 2020 GMT reflecting the day’s trading activity.
In summary, Wall Street and European markets saw positive gains, with the S&P 500 reaching a new high, while Asian markets experienced some volatility due to currency fluctuations. Investors are cautiously optimistic about future market performance despite upcoming economic data releases.
