Economic recession concerns have eased, with strong performance from constituent stocks, boosting the Dow Jones Industrial Average.
Overnight in the US stock market, the Dow rose for 13 consecutive trading days, reaching the highest level in over 17 months since February 9 last year, setting a new record for the longest consecutive rise since January 1987. If it rises for 14 consecutive days, it will break the record set in June 1897, the longest since the creation of the Dow.
This upward trend is mainly driven by reduced concerns about economic recession and strong performance of component stocks in the second quarter. In the early morning of Thursday Beijing time, the Federal Reserve announced a 25 basis point rate hike and issued forward guidance on future rate hikes, but the market remained relatively stable.
Subsequently, Powell stated in the press conference that the Federal Reserve no longer predicts a recession in the United States.
In addition, it is the earnings season, and component stocks of the Dow such as Boeing, Coca-Cola, and 3M have exceeded expectations. Boeing rose 8.8% to the highest level in 20 months since November 2021. Second-quarter revenue and free cash flow exceeded expectations, and the loss per share was smaller than expected, benefiting from increased commercial aircraft deliveries.
Another component stock, Coca-Cola, rose more than 1% to the highest level in over two months. Second-quarter revenue and profits exceeded expectations, and the full-year guidance was raised, thanks to price increases for its products, but the company stated that it will not raise prices again in developed economies in Europe and America this year.
