US stock market rallies moderately in early trading

US stock market rallies moderately in early trading

US stock market rallies moderately in early trading

US stock indexes are moderately higher during trading on Wednesday on expectations of the results of the meeting of the US Federal Reserve System (FRS).

The Dow Jones Industrial Average rose by 89.01 points (0.32%) by 16:50 Moscow time – up to 28,084.61 points.

Standard & Poor's 500 gained 8.17 points (0.24%) and amounted to 3409.37 points.

The Nasdaq Composite rose 4.71 points (0.04%) to 11195.04 points.

On Wednesday, a two-day meeting of the Federal Open Market Committee (FOMC) ends, which is the first since the Fed approved a new long-term strategy.

The new strategy, approved by the Fed in late August, calls for a change in the central bank's approach to inflation targeting. The Fed will aim to achieve an average inflation rate of 2% “over a period of time.”

In a text released at the end of the July meeting, the Fed announced that it intends to maintain the target range of the federal loan rate at 0-0.25% per annum until it is sure that “the economy has withstood recent events” and is moving towards its goals.

The Organization for Economic Co-operation and Development (OECD) has improved its forecast for the world economy for 2020, while slightly worsening its forecast for 2021. According to new OECD estimates, global GDP will contract by 4.5% this year and grow by 5% in 2021. The organization's June forecast called for a 6% drop in the global economy this year and an increase of 5.2% the next.

Meanwhile, US retail sales rose 0.6% in August from the previous month, the country's Commerce Department said. Experts predicted an average growth of 1%, according to data from Trading Economics. The revised data showed that sales increased 0.9% in July, up from 1.2% as previously announced.

Southwest Airlines Co (NYSE: LUV) shares. on Wednesday, the price increased by 0.2% after the airline raised the forecast of flight congestion in September to 45-50% from 40-50%. Southwest expects flight occupancy rates to range from 45% to 55% in October.

FedEx Corp (NYSE: FDX) jumped 7.2%. One of the world's largest transportation and logistics companies increased its net profit and revenues in the first quarter of fiscal 2021 thanks to a significant increase in demand for delivery services during the coronavirus pandemic.

Eastman Kodak Co. soared by 52.1%. According to The Wall Street Journal, a special committee created by the company found no signs of violation of the law in Kodak's disclosure of information about the allocation of a government loan to it for $ 765 million.

Tesla Inc. are down 2.4% and may interrupt five-day gains, despite Deutsche Bank (DE: DBKGn) analyst Emmanuel Rosner raising its target price for the electric vehicle maker by 33%.

Facebook Inc (NASDAQ: FB) Quotes. are down 0.7%. According to The Wall Street Journal, the US Federal Trade Commission (FTC) intends to file an antitrust lawsuit against Facebook by the end of the year.

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