As the investors were digesting remarks from Janet Yellen, the US Federal Reserve Chair and also a batch of country’s economic data, the stocks of US didn’t show drops in the past week as all the major three indices closed at a record high for about three times out of the total five sessions.
For the previous week, Dow, NASDAQ, and S&P 500 had solid gains with jumps of 1.7 percent, 1.8 percent, and 1.5 percent, respectively.
The Fed was considering to raise interest rate and that would be discussed in the upcoming meeting, according to Yellen.
In her Senate Housing, Urban Affairs and Banking Committee, Yellen said that the Federal Open Market Committee at its upcoming meetings is going to evaluate whether inflation and employment are evolving according to the expectations. If that’s the case then adjustments to the rate of federal funds would definitely be an appropriate decision.
Her assessment of economy was upbeat as she said that the progress in the economy is of a continued nature in terms of employment and objectives of price stability.
The Index that keeps track of the Producer Price had increased in January by 0.6 percent for final demand, beating the consensus of 0.3 percent of market, seasonally adjusted, as reported by the US Labor Department reported on Tuesday.
Even the CPI (Consumer Price Index) for the urban consumers also increased in January by 0.6 percent on seasonally adjusted basis, according to the US Labor Department’s Wednesday report. It also beat the consensus of the market of 0.3 percent.
And in the past 12 months, there was a rise of 2.5 percent in the all items index before the seasonal adjustment.
The Department of Commerce also announced an increase of 0.4 percent as compared to the previous month in the US retail and food services as the advance estimate of sales for January 2017 narrowed down at 472.1 Billion Dollars. This was also about the estimates of the market of 0.1 percent.
President Trump also encouraged the investors with his remarks. He kept reiterating his agenda for US economy in the recent retail CEOs meeting held on Wednesday.
According to CNBC, he said that the administration is focused on all the issues, which will in turn bring growth economically.
Stocks have seen sharp gains after the presidential election was won by Trump last November. Investors believe that Trump would ensure corporate tax cuts, infrastructure spending, and deregulations.
Even the seasonal earnings showed growth. According to data from Reuters, S&P 500 companies earning in the Q4 2016 were expected to rise year on year by 7.3 percent and revenues are forecasted to increase 4.3%.
Let’s just hope that President Trump keeps his promise of bringing an economic reform in the United States.