Best August since the 80s for the S&P 500 – E24

The trading week on Wall Street has offered a wide rise for the main stock indices, and the US stock market did not disappoint on the rise either.

This is how the day ended in the three leading Wall Street indices:

• The Dow Jones finished 0.57 percent
• The S&P 500 is up 0.67 percent
• Nasdaq rose 0.60 percent

Hence, the broad S&P 500 Index has reached new all-time highs in the past seven business days.

The index is increasing by more than 6 percent in August, which is the highest monthly increase in August since 1986, writes CNBC.

The high-tech Nasdaq Composite rebounded from the stock market crash after the crown fell as early as May, while the industrial-heavy Dow Jones has struggled to catch up. On Friday, the index finally reached the level it started the year at and is now 0.4 percent higher than the year.

– The industry index is the last of the major indexes to offset the loss so far this year. To some extent, it’s psychologically positive for the market, says Randy Frederick, vice president of trading and derivatives at investment bank Charles Schwab for CNBC.

Coca-Cola and Tesla are going up

Coca-Cola announced Friday that it will cut 4,000 employees in the United States, Canada and Puerto Rico. The reduction sent the stock higher than 3 percent.

Tesla announced in early August that they would be doing a stock split to make the stock more affordable for small savers. The stock split will take place after the close of business on Friday, and Tesla’s stock fell 1.13 percent.

Retail giant Walmart has teamed up with tech giant Microsoft in the battle to acquire the popular video app Tiktok. Shares of Walmart were up about three percent.

Hotel and casino giant MGM Resorts International is shedding more than a quarter of its employees after the revenue collapse following the virus outbreak. A total of 18,000 employees will lose their jobs at the company, after MGM lost 91 percent of revenue in the second quarter and has so far lost more than $ 1 billion following the virus outbreak.

MGM shares rose 4.60 percent on news of the decline.

Changes in the Central Bank

Friday’s rise follows a turbulent Thursday on Wall Street, when Federal Reserve Governor Jerome Powell announced in a speech that the central bank will switch to a so-called average inflation target, which means that inflation could exceed the two percent “for a period.”

The central bank change makes it possible for interest rates in the US to stay around zero for a long time.

– The Fed still fits the market and the market responds positively to the statement of support. It was a confirmation that “yes, we will see these lower interest rates for a long time to come,” Chief Investment Officer Tracie McMillion at Wells Fargo tells Bloomberg.