The stocks of U.S. market ended higher on the last trading day, November 21, 2014. All the important indexes slashed by 1/5th when the central bank of China reduced its interest rate and the euro fellow of the company announced that it would boost the economy of euro region by buying assets.
The Standard & Poor’s 500 as well as the Dow average was recorded to be at the peak points. The 10 important industry segments of Standard & Poor’s closed at their high whereas 63 percent of the total U.S. shares that were traded on the NYSE closed with positive changes. As far as Nasdaq is concerened, almost 50 percent of the stocks closed at the day high price.
The central bank of China, for the very first time in the last two years, reduced the interest rate that it had set for lending purposes. This move was made after the regional head of European Central Bank, Mario Draghi, announced that the European Bank plans to increase the tremendously near to the ground inflation rate that is prevailing in the region, in order to boost the European economy. Mario further said that the bank will take any and all measures needed to stimulate the market transactions. The European Bank revealed that it has started making asset-backed purchases in order to boost the economy by encouraging banks to increase their lending rate.
The chief strategist for investments at Janney Montgomery, Mart Luschini, said that it is not the magnitude of the moves made by certain actors of the market that influence it; rather it is the shock value that lifts the market. It is important to mention here that Janney Montgomery manages assets worth around $67 billion. Mart Luschini further said that the world has become a global village these days, and hence, a move made by one actor of the market can affect several others.
The average of Dow Jones increased by 88.94 points and reached to 17,807.94. The Standard & Poor’s 500 rose 10.7 percent and flew to 2,063.45 points. As far as the Nasdaq composite is concerned, the IXIC gained 11.10 points and reached to the figures of 4,712.97.
The Standard & Poor’s 500 as well as Dow average ended at a record high figure. The Dow average rose 1 percent for the week whereas S&P figures saw an increase of 1.2 percent. This was the fifth time in a row over the last week when all three composites rose.
The gain in Nasdaq composite was limited by the drop in the big tech companies. The shares of Microsoft Corporation (NASDAQ:MSFT) dropped by 1.5 percent and fell to $47.97. Similarly, the stock prices of Netflix Incorporation (NASDAQ:NFLX) decreased by 2.1 percent and came down to $360.28. The shares of GameStop Corp (NYSE:GME) dropped by 13 percent and fell to $37.86 after the company reported its quarterly figures. The figures were well below the estimates. The stocks of GameStop were one of the biggest dropper in the S&P 500.