The three leading stock indices on Wall Street rose significantly in the pre-trading period on the last trading day of the week. During the opening hours, the Dow Jones rose by about 0.56 percent, the Standard & Poor’s rose by about 0.88 percent, while the Nasdaq rose by about 1.5 percent. At closing time on Friday it looks like this:
- The Dow Jones index fell 0.14 percent.
- The S&P 500 rose 0.21 percent.
- The Nasdaq was up 1.43 percent.
This comes after a broad and sharp decline on Thursday on fears of slowing economic growth. The Dow Jones index fell 2.41 percent on Thursday. The S&P 500 fell 3.24 percent, while the Nasdaq closed 4.08 percent lower.
This week, the heavyweight S&P 500 and Nasdaq are down six percent each, while the Dow Jones is down about five percent. The industry-heavy Dow Jones fell below 30,000 points on Thursday afternoon, the lowest since January last year.
The fear is that central banks will do everything in their power to cool down the inflation that characterizes the market, said Eric Bruce, chief strategist at Nordea. To DN Thursday afternoon.
The S&P 500 and Nasdaq are both in bear market territory, down about 24 percent and 34 percent from record levels in January and November, respectively. The Dow is about 19 percent below a record high in January.
On Wednesday evening, three rate hikes by the US Federal Reserve became a reality. Until the beginning of this week, there were broad expectations of only a twofold increase, before a Wall Street Journal article created big waves with information that the Fed estimated a quarter of a percentage point above that.
The forecast was then revised to a triple increase, 0.75 percentage point. Governor Jerome Powell did not disappoint either, posting the largest increase since 1994.
Federal Reserve Chairman Jerome Powell on Friday reiterated the central bank’s commitment to reducing inflation, saying it is crucial to the global financial system, According to CNBC.
The Federal Reserve’s strong commitment to our mandate of price stability contributes to broad confidence in the dollar as a valuable asset. To that end, my colleagues and I are highly focused on getting inflation back to our 2% target, Powell said from the podiumto attend a Federal Reserve-sponsored conference on the global role of the US currency on Friday.
In the UK, the Bank of England raised interest rates by 0.25 percentage point on Thursday afternoon, the fifth consecutive increase. The UK policy rate is now 1.25%.
Like the Federal Reserve, the Bank of England also understands that interest rates must rise to beat high inflation, which in the UK in April was 9 percent. This is the highest level in 40 years, according to CNBC. Inflation in England is expected to reach 11% by October.
Also in Switzerland, which has not seen a rise in interest rates since 2007, the central bank came with the first increase in 15 years on Thursday, when the key rate was raised to negative 0.25 percent, from negative 0.75 percent.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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