Energy prices rise, EU implements emergency measures

On Tuesday, the US stock market edged higher. The Dow Jones index rose 15.73 points to a record high of 35,756 points; the S&P 500 index rose 8.31 points (+0.18%) to 4,574 points, which is also a record high; the Nasdaq index rose 45.3 points (+0.29%) to 15,559 point.

US President Biden may nominate Powell again as the chairman of the Fed. It is expected that Biden will nominate up to four Fed members, and the interests of workers will be the focus of Biden's nomination. Brown reiterated that he believes that Powell's performance in monetary policy is quite outstanding, but his performance in financial regulation and climate change is lacking.

The EU Energy Ministers held a special meeting in Luxembourg on the 26th to exchange views on the issue of rising energy prices and discuss the response measures of member states and the EU. The EU Energy Minister agreed that member states should take urgent measures to protect the interests of disadvantaged consumers. Ministers also discussed medium- and long-term measures, including electricity market reforms, voluntary joint gas purchase programs, and EU energy storage programs.

The dollar index stabilized at 93.92 points.

US gold futures continued to trade near record highs, as better-than-expected earnings reports fueled the optimism of investors and traders. The fact is that investors have been worried that price increases may suppress consumer demand, but the actual results show that consumers are in a fully healthy state and they are capable of spending soaring costs. As long as consumers can cope with rising costs, market participants will be willing to accept higher risk bets.

So far, nearly 30% of the S&P 500 index constituent companies have announced earnings. Among the companies that released quarterly updates, 80% of companies had profits that exceeded expectations, and 80% of companies had sales that exceeded expectations. Strong performance is essential to push the major stock indexes to new highs.

Coca-Cola, McDonald's, Bristol-Myers Squibb, Boeing, General Motors and Harley-Davidson announced their earnings reports before the market opened on Wednesday. After the stock market closes, Ford, eBay and Yum China will release quarterly reports.

The S&P 500 index climbed 0.18%, marking the ninth consecutive day of gains for the index and setting intraday and closing highs. This is the 70th intraday high of the benchmark index in 2021 and the 57th record closing point this year.

The Nasdaq Index rose 0.06%, marking the third day of gains in four trading days. Snapchat's stock price fell 3.9%, dragging down an index dominated by technology stocks.