Stocks in New York reach unprecedented peaks due to the Federal Reserve's indecision regarding interest rate adjustments.
In the world of finance, several key events have unfolded this week. Let's break down the latest developments.
The Fed's potential monetary policy decisions have been a hot topic, with many investors holding speculative positions hinging on the central bank not sounding too restrictive. This uncertainty has had a mixed impact on the markets, with the S&P 500 decreasing by 0.09 percent to 6,610 points, while the Dow Jones Industrial fell by 0.23 percent to 45,777 points.
However, the hope for a loosening of monetary policy has caused great euphoria at the tech exchange Nasdaq. This optimism, coupled with falling interest rates, has increased the present value of the expected high future earnings of tech companies. Despite this, half of the index members in the recent rally in tech stocks have been in the red since the beginning of the winning streak in the S&P 500.
One notable exception is Hershey, which received a double upgrade from Goldman Sachs, changing their rating from "Sell" to "Buy". As a result, Hershey's shares rose by 3.7 percent. Goldman Sachs experts praised the positive development of Hershey's market shares in their study.
Elsewhere, Walt Disney announced details of their planned cooperation with Webtoon Entertainment. The media giant intends to bring all their well-known comics, such as from the Star Wars and Marvel universes, together on a new digital platform and app. In response, Webtoon Entertainment's shares increased by as much as 36 percent, although Walt Disney's shares fell by 0.6 percent.
Walt Disney also plans to acquire a 2 percent stake in Webtoon Entertainment, but the name of the future CEO of Webtoon Entertainment, known through the planned cooperation with Walt Disney, is not explicitly mentioned in the available search results.
Meanwhile, the legal landscape has seen some movement as well. President Donald Trump filed a billion-dollar defamation lawsuit against the New York Times and several of its journalists. In a separate development, the New York Times rejected Trump's lawsuit as unfounded. Shares of the New York Times decreased by nearly two percent in the wake of these events.
Lastly, the further interest rate path, whether the central bank will embark on a continuous rate-cutting cycle, is of interest. Market analyst Jochen Stanzl from CMC Markets predicts a possible 0.25 percentage point interest rate cut by the Fed, with a small chance of a 0.50 percentage point cut. The Nasdaq 100 and the Nasdaq Composite barely moved in response to these predictions.
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