Stocks Remain Near Record-Highs on Wall Street

Stocks Remain Near Record-Highs on Wall Street

(ReliableNews.org) – The stock market has been volatile for the last 20 months in the wake of the COVID-19 pandemic and its accompanying harsh restrictions. This has resulted in the shutdown of multiple businesses and the slowdown of many industries. However, it appears things could be leveling off on Wall Street.

On Monday, August 30, stocks remained at near-record highs after seeing significant gains last week from investors. This was encouraged by news the Federal Reserve would maintain low-interest rates as the American economy continues its effort to reopen.

The impact of the expected continuance of low-interest rates became evident Monday as the Nasdaq rose 0.8%, the S&P increased by 0.5%, and the Dow Jones Industrial Average picked up 34 points for a gain of 0.1%.

Technology stocks saw the greatest benefit from low-interest rates, with Apple shares rising 3% and Amazon and Facebook seeing gains of more than 2% each. Healthcare stocks saw significant gains too, which helped raise the benchmark S&P 500.

Energy sector stocks showed mixed benefits from the Fed announcement. However, the lack of clarity of the full economic impact of Hurricane Ida contributed to the volatility. Nevertheless, its potential drag on the nation’s economy isn’t expected to be significant as long as damage estimates don’t rise and the temporary shutdown of refineries remains temporary.

On Tuesday, The Conference Board reported that consumer confidence fell to its lowest level since February due to concerns regarding the Delta variant and rising food and gas prices. However, the release of new employment figures from the Department of Labor on Friday could offset investor concern.

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