NEW YORK (Reuters) - A gauge of global stocks hit a one-month high on Wednesday as Wall Street and European markets churned higher after a raft of strong corporate earnings, while the U.S. dollar hit a three-week high against a basket of major currencies.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 18, 2018. REUTERS/Brendan McDermid
Oil prices rose, reversing earlier losses, on bullish demand signals. Gold slumped to a year low before rebounding.
Markets also responded to a second day of congressional testimony from U.S. Federal Reserve Chairman Jerome Powell, whose upbeat remarks about the economy on Tuesday bolstered the dollar. Powell repeated on Wednesday that rising world protectionism would over time pose a risk to a U.S. and global expansion that currently appears largely on track to continue.
“Strengthening economic growth and a confident Fed is helping to support the dollar,” said Alan Gayle, president of Via Nova Investment Management LLC in Fredericksburg, Virginia. “Higher short-term interest rates make the dollar more attractive relative to other currencies.”
On Wall Street, the Dow Jones Industrial Average rose 70.11 points, or 0.28 percent, to 25,190, the S&P 500 gained 4.42 points, or 0.16 percent, to 2,813.97, and the Nasdaq Composite dropped 1.74 points, or 0.02 percent, to 7,853.38.
The S&P 500 hit a more than five-month high.
Shares of Morgan Stanley, airline United Continental and railroad CSX all jumped after the companies reported better-than-expected results.
Amazon.com Inc’s stock market value reached $900 billion for the first time, though the shares later reversed course to trade slightly lower.
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