Rise on Wall Street – Major indices rose above one percent

Rise on Wall Street - Major indices rose above one percent

This is the third day in a row that Wall Street is rising, and when the stock market closes, all three major indexes are up more than one percent.

This is what it looked like on Wall Street at closing time:

  • The broad S&P 500 index closed at 1.23 percent.
  • The heavy-tech Nasdaq rose 1.33 percent.
  • The Dow Jones Industrial Average closed up 1.22 percent.

After the US Federal Reserve interest rate announcement Wednesday night in Norwegian time, Wall Street’s major indexes pulled back from the rally earlier today.

However, towards the end of trading, the mood rebounded dramatically, and all three major indicators ended strong on Wednesday.

The Nasdaq Index advanced, increasing by about four percent, while the Dow Jones and Standard & Poor’s indexes rose 1.5 percent and 2.2 percent, respectively.

Before the opening on the penultimate trading day of the week, the previous trade indicated a dip after a rally on Wednesday. It was also the decision for all three major indices when trading opened. A few hours later, it looks like this: The broad S&P 500 is up about 0.5 percent. And the heavy-tech Nasdaq rose 0.3 percent. The Dow Jones Industrial Average rose 0.45 percent.

This development comes after the Federal Reserve on Wednesday raised the interest rate by a quarter of a percentage point, at the same time that the central bank is now envisioning six more rate increases in 2022.

the specter of inflation

One of the hot topics in recent months has been the surge in prices. It was not without reason. Inflation in the United States is at its highest level in 40 years, while the war in Ukraine and ongoing disruptions in supply chains have spoiled an already complex picture.

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When Central Bank Governor Jerome Powell met with the press after introducing the interest rate decision, he was asked several questions about how the Federal Reserve envisages the next picture.

– Before the invasion of Ukraine, I would say that the expectation of lower inflation will be during the first quarter. Powell said, who has been quite clear that it will take longer to bring inflation down to the 2 percent target than it had previously assumed.

In the report accompanying Wednesday’s rate announcement, members of the Federal Reserve’s interest rate committee envision inflation of 4.3 percent in 2022, up from 2.6 percent in December. It’s not until 2024 and beyond that the Fed expects inflation to fall below 2.5 percent.

It is quite clear not only from the Federal Reserve, but also from other central banks, that it is inflation that appears to be the biggest problem. Growth forecasts for 2022 have been significantly lowered, largely due to influences from Ukraine, but at the same time estimates for next year will not be revised upwards, said chief economist Kjetil Martinsen at Swedishbank.

The Fed now estimates GDP growth of 2.8 percent this year, down from an estimate of four percent in December.

Oil price hike

After a downtrend in recent days, the price of both North Sea oil and US light sweet oil is rising on Thursday afternoon. The price of a barrel of North Sea oil is now around $104, up about seven percent.

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West Texas Intermediate, the US light sweet crude, also rose about six percent. The price of a barrel is now just over $100.

according to CNBC The purchase was made after the International Energy Agency (IEA) warned that about three million barrels of Russian oil per day risked disappearing from the market in April. (Terms)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."

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