S&P 500, Dow climb as health insurers, financials gain

XAUUSD daily chart July 9

XAUUSD daily chart July 9

Quoting statistics, on Thursday's (July 11th) market closure, Dow added 0.23 percent to 26,843.78 after reaching 27,000 marks briefly for the first time during early U.S. trading hours, S&P 500 had gained 0.28 percent to 2,987.87, while Nasdaq had rounded off the day 0.38 percent higher to 8,172.44.

The Dow Jones Industrial Average rose 227.88 points, or 0.85 percent, to 27,088.08, the S&P 500 gained 6.84 points, or 0.23 percent, to 2,999.91 and the Nasdaq Composite dropped 6.49 points, or 0.08 percent, to 8,196.04. Cigna Corp surged more than 11%, leading gains in the S&P 500 index, while drug distributors such as McKesson Corp rose 1.2%. The Nasdaq fell 6 points, or 0.1%, to 8,196.

For the week, the S&P 500 rose 0.8%, the Dow added 1.5% and the Nasdaq gained 1%.

In fixed-income markets, benchmark 10-year U.S. Treasury notes last fell 18/32 in price to yield 2.1221%, from 2.061% late on Wednesday.

Powell stressed that the Fed is prepared to cut interest rates to support the economy, raising hopes that the first reduction in its key policy rate in a decade could happen later this month.

Meanwhile, he said the US economy is viewed to be deteriorating.

The Labor Department report comes on the heels of strong consumer price data published on Thursday, suggesting overall inflation could continue to rise moderately despite the gains in consumer prices.

"We're coasting along with the wind at our back right now after Powell's testimony this week which points toward a rate cut in July", said Michael Antonelli, market strategist at Robert W. Baird in Milwaukee. The bump in inflation wasn't expected to give the Fed reason to reconsider whether it should lower rates, if necessary.

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The Canadian dollar traded for 76.64 cents USA compared with an average of 76.51 cents United States on Thursday. Merck & Co. dropped 4.5 per cent.

Nvidia climbed 3.9% and Goldman Sachs rose 2.6%.

Illumina sank 15% after reporting weak results and issuing a dismal revenue forecast.

Johnson & Johnson's slide dragged down the S&P 500 healthcare index, whose 1.2 per cent decline was the biggest among S&P 500 sectors.

U.S. -Chinese trade has weakened since President Donald Trump started hiked tariffs past year on goods from China in a fight over Beijing's technology ambitions.

In commodities trading, the U.S. benchmark crude, West Texas Intermediate, dropped 0.38 percent to $60.20 barrel after the publication of an analysis by the Organisation of Petroleum Exporting Countries predicting lower demand for oil in 2020.

The Japanese yen and the euro were near flat against the dollar. Brent crude oil, the global standard, added 23 cents to $66.75 per barrel.

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