Why Fed interest rate hikes won’t hurt economic growth
Art Laffer, a former economic adviser to President Ronald Reagan, reacts to the GDP growth of 4.2 percent in the second quarter, and whether discusses whether Federal Reserve interest rate hikes could derail potential growth.
Equity futures are trading cautiously ahead of the last day of the month and quarter.
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Dow Jones futures were lower by 0.6 percent. The S&P 500 declined by 0.04 percent and the Nasdaq Composite was off 0.04 percent.
In afternoon news, the Securities and Exchange Commission (SEC) filed a lawsuit against Tesla CEO Elon Musk claiming securities fraud, court records show.
The lawsuit references alleged “false and misleading” statements made by Musk about taking the publicly-traded company private. It also claims he “knew or was reckless in not knowing” that his statements were false and/or misleading.
Tesla shares fell as much as 12 percent in extended trading.
Stocks rose broadly Thursday as investors digested the Federal Reserve’s decision to raise interest rates and looked ahead to third-quarter earnings season next month.
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In Thursday’s trading, the Dow Jones Industrial Average gained 54.65 points, or 0.21 percent, to 26,439.93. The S&P 500 rose 8.03 points, about 0.3 percent, to 2,914. The Nasdaq Composite was up 51.6 points, or 0.65 percent, 8,041.97.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 26439.93 | +54.65 | +0.21% |
| SP500 | S&P 500 | 2914 | +8.03 | +0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 8041.9681 | +51.60 | +0.65% |
The final second-quarter GDP reading came in at 4.2 percent, matching estimates, while there was an uptick in weekly jobless claims. Durable goods orders climbed to a six-month high in August.
Friday’s economic reports include personal income and spending and also consumer sentiment.
In Asia, China’s Shanghai Composite Index gained 0.7 percent.
Hong Kong’s Hang Seng index added 0.6 percent.
Japan’s Nikkei average jumped 1.5 percent, hitting a 27-year high.
In Europe, London’s FTSE opened down 0.2 percent, Germany’s DAX was 0.1 percent lower and France’s CAC was down 0.7 percent.
Fox Business’ Leia Klingel and Brittany De Lea contributed to this report.
