Tech Stocks Rally Ahead of Powell's Speech... Salesforce.com Up 26% (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Salesforce.com, newly included in the Dow Jones Industrial Average 30, surged 26% on strong earnings. The strength of Salesforce.com led the rise in tech stocks, lifting the overall New York stock market.

On the 26th (local time), the Dow Jones Industrial Average closed at 28,331.92, up 83.48 points (0.3%), the S&P 500 index rose 35.11 points (1.02%) to 3,478.73, and the Nasdaq index gained 198.59 points (1.73%) to close at 11,665.06. Both the S&P 500 and Nasdaq indices continued to set new record highs.

The market rally was led by technology stocks that day. Salesforce.com surged from the opening bell after reporting an earnings surprise announced the previous day. Facebook and Netflix also jumped 8.2% and 11%, respectively. Apple, the largest company by market capitalization, rose 1.4%, while Microsoft and Alphabet showed gains in the 2% range.

Biotech company Moderna announced that its COVID-19 vaccine candidate showed positive results in trials targeting the elderly, leading to a rise of over 6%.

The market is closely watching what Federal Reserve Chairman Jerome Powell will say at the Jackson Hole meeting starting the next day. Powell’s remarks are expected to have a significant impact on financial markets. If Powell signals tolerance for inflation above 2%, it will inevitably affect interest rates, stocks, and the value of the dollar.

Peter Boockvar, Chief Investment Officer at Bleakley Advisory Group, predicted that Powell’s remarks tomorrow will indicate the future direction of the Fed’s monetary policy regarding inflation. Bloomberg News also reported market participants’ expectations that the Fed will maintain near-zero interest rates for at least five years.

Gold closed at $1,952.50 per ounce, up 1.5% ($29.40). The rise in gold prices is interpreted as reflecting anticipation of Powell’s remarks. The dollar value rose slightly but the increase was limited ahead of Powell’s speech.

West Texas Intermediate (WTI) crude oil closed at $43.39 per barrel, up 0.09% ($0.04).