Mixed Performance of U.S. Indices: At the end of trading on Wednesday, U.S. markets’ indices showed mixed performance.
The Dow Jones Industrial Average rose by 0.59% and recorded a new all-time high.
In contrast, the S&P 500 Index fell by approximately 1.39%, and the Nasdaq Index dropped by about 2.76%.
Content:
Weak Growth in U.S. Production
Mixed Performance of U.S. Indices
Reasons for the Recent Strength of the Japanese Yen
Weak Growth in U.S. Production
Data released by the U.S. Federal Reserve for June showed that U.S. industrial production grew faster
than market expectations for the second consecutive month. Industrial production rose by 0.6% monthly,
compared to market expectations of only 0.3%.
The capacity utilization rate in the United States also increased to 78.8% in June,
higher than the market expectations of 78.6%.
It recorded 78.7% in May before being revised to 78.3%.
Mixed Performance of U.S. Indices:
At the end of trading on Wednesday, U.S. markets showed mixed performance in their indices.
The Dow Jones Industrial Average rose by 0.59% and recorded a new all-time high.
In contrast, the S&P 500 Index fell by approximately 1.39%, and the Nasdaq Index dropped by about 2.76%.
The communication, Oil & Natural Gas, and financial sectors saw gains.
In contrast, the technology, consumer services, and industrial sectors experienced losses,
leading to an overall decline in the general indices.
Reasons for the Recent Strength of the Japanese Yen:
In recent days, the U.S. dollar has seen a sharp decline against the Japanese yen.
This drop was due to repeated statements from members of the U.S. Federal Reserve suggesting a less aggressive monetary policy stance.
For instance, Federal Reserve member Waller mentioned that inflation data
has boosted confidence in the central bank’s ability to achieve its 2% inflation target.
He also indicated the possibility of slowing wage growth per this target.
Simultaneously, the Japanese yen received explicit support from statements made by Masato Kanda,
Japan’s Vice Minister of Finance for International Affairs.
Kanda warned about the yen’s depreciation and stressed that the relevant Japanese authorities
would not hesitate to respond appropriately if speculators caused excessive volatility in the foreign exchange market.
These statements from the Japanese official provided clear support for the yen against the dollar during the trading session.
Mixed Performance of U.S. Indices