US shares booked their seat in the upside

Weekly insight: NYSE is on its way to more gains

New York Stock Exchange concluded last week trading with gains buoyed by expectation of a rate cut in Fed’s September meeting.

Contradiction was strongly present in equity markets last week as negative data – which aroused stagflation fears – were behind stocks rally after they negative indicators supported the possibility of a rate cut in September.

Although service sector – represents 71% of GDP – recently declined, according to ISM, the sector is still in the growth or expansion zone.

Reading of 50 and above reflects growth which numbers under this standard level reflect contraction of the sector.

Earnings were also among the drives of stocks in the upside as Disney and MacDonald’s earnings were above expectations.

Trump’s nomination of Stephen Miran, a key voice in the push for the administration’s tariff policy and a critic of the Federal Reserve’s independence, was also one of the upside momentum of the shares as the new members is an advocate of low interest rates.

I see that stocks are to continue climbing throughout the week ahead.