United States stock market observed a boost recently. Standard & Poor along with NASDAQ has fuelled this growth by reaching an Intraday high ahead of Apple’s results before closing. The United States Federal Reserve will be meeting soon regarding the potential hike in the interest rates. The wall street will be closely monitoring this meet. The latest figures indicate that service sector continues to grow for eight straight months. It reached seven-month peak last month and now showing a slight dip in the month of April.
Experts are informing that investors should not expect an interest rate hike before the end of the current financial year. The interest rates have been frozen since the financial crisis of 2008. The analysts have already downgraded the U.S. economic outlook due various negative indicators and low expectations on a hike in the interest rates. Chief U.S. Market Strategist Jonathan Golub at RBC Capital Markets based in New York said that the main reason behind this visible growth is quarter one earnings announcement.
Almost every major corporation has earned more than predicted. According to him, analysts predicted very low earnings, almost all major shares are giving up to 10 percent for the first quarter with an exception in the energy sector. Around 70.4 per cent companies in the prestigious S&P 500 index have earned more than a projection of the analysts. Mostly the number is around 63 percent. The S&P 500 achieved an Intraday high of 2,125.92 along with Tech-savvy NASDAQ, which hit 5,119.83, closest to its all time high.