Nasdaq responded with a cautious rise – the Dow Jones fell for the fourth day in a row

Nasdaq responded with a cautious rise - the Dow Jones fell for the fourth day in a row

On Tuesday, the three major indices in the US stock market opened with strong gains. It came after a strong start to the week, when all indexes fell more than 2% on Monday. The worst was the tech-heavy Nasdaq, which fell more than four percent.

When the stock exchange opened on Tuesday, all three indexes looked brighter. The tech-heavy Nasdaq rose 2.67 percent in the first minutes, while the Dow Jones and Standard & Poor’s rose 1.41 and 1.81 percent, respectively.

In the end, it ended up rising for two of the three leading indicators:

  • The Nasdaq Composite Index rose 0.98 percent
  • The Dow Jones Industrial Average fell 0.26 percent
  • The S&P 500 rose 0.25 percent

For the industrial-density Dow Jones, this marked the fourth consecutive day of declines, while it was a long-awaited rebound for the other two major indices after several days of sharp declines.

record high inflation

Stock market last week It was heavy in the United States, and ended down in all three major indicators. On Thursday, the Nasdaq saw its biggest drop in two years, and on Monday this week, the broad S&P index fell. Below 4000 points for the first time in a year.

Part of the turmoil stems from record high inflation in the US, and on Wednesday last week, the US Federal Reserve raised its key interest rate by 0.5 per cent. This is the first time since 2006 that interest rates have been raised in two consecutive meetings, according to the Wall Street Journal.

See also  I lost 10 million subscribers

Fear again that the Fed will not succeed in curbing inflation, without pushing the economy into deflation, Handelsbanken chief economist Marius Gunsholt Hof wrote in a morning report from the bank on Tuesday.

In a speech at the White House on Tuesday, the President of the United States said that high inflation is his top priority domestically. He blamed the price hike on the pandemic and Russian President Vladimir Putin’s invasion of Ukraine, according to him Watchman.

“I want every American to know that I take inflation seriously and that this is a top priority for me domestically,” Biden said during his speech.

On Wednesday of this week, US inflation figures for April will be published, but already on Monday there were signs of a price increase by a survey of consumers from the Federal Reserve Bank of New York. According to Bloomberg, this showed that American consumers estimate that prices in three years will be higher compared to last month.

The Federal Reserve is now warning of increased risks and deteriorating liquidity conditions in financial markets. One of the things that may also have caused some disruption is yesterday’s consumer survey from the New York Fed, which now shows an upward revision to medium-term inflation expectations, Gunshult Hoff wrote.

Jams and supply problems

According to Bloomberg, investors are concerned about the Federal Reserve’s monetary policy, at a time when supply chain disruptions pose a significant risk of rising inflation. The war in Ukraine, which helped push commodity prices to high levels, is one factor that contributed to this increased risk.

In addition, the new coronavirus lockdown in China has caused supply chain problems.

Director Kristian Tunaal at Alfred Berg Kapitalforvaltning is among those who have pointed out this It would have dire consequences for the Western world.

The global market depends on supplies from China, but trade is now halting. Because of the closures, many millions of people are out of work. This means that both orders are declining and nothing is being created, Tunal told DN earlier on Tuesday.

On Tuesday evening, the Nikkei average on the Tokyo Stock Exchange was down more than 2%. When the Hong Kong Stock Exchange opened for trading, the Hang Seng fell 3.5 percent instantly.(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.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

Leave a Reply

Your email address will not be published. Required fields are marked *