The mood among Wall Street investors was rising after last week’s sharp drop in the stock market.
- The broad S&P 500 index rose 3 percent.
- The Dow Jones Industrial Average rose 2.6 percent.
- The Nasdaq Technology Index rose 3.3 percent.
Before trading began on Friday, the S&P 500 was up 3.3 percent for the week, the Nasdaq was up four percent for the week, while the Dow was up 2.6 percent. But so far in June, all major stock market indices are down more than five percent.
It may appear that the stock market has stabilized, at least in the short term. But experts are pessimistic about the slightly longer term and warn of recession, ie economic downturn, fear and trembling in stock exchanges.
Recession remains the focus of Wall Street, meaning that regardless of Wall Street’s rally, it will likely be short-lived, senior market analyst Ed Moya at Oanda says in a note, according to CNBC/TDN Direkt.
One potential contributor to the good weather mood ahead of the weekend may be statements from the President of the Federal Reserve Bank of St. Louis, Jim Bullard. Known as the “big hawk,” the most aggressive in lowering inflation, Bloomberg wrote, he said the fear of a recession was exaggerated.
tug of war
Thus, the market has begun to adjust so that there are no more rate increases after December.
“There’s a bit of a push and pull over fears of slowing global growth and recession, and the possibility of a lot of that already counting,” Emily Rowland, chief strategist at John Hancock Investment Management, told the news agency.
Cryptocurrency bitcoin appears to have stabilized above $20,000 after a dramatic drop of more than 67 percent since November last year. Bitcoin is trading on Friday afternoon for just over $21,000, which is virtually unchanged on the day.
The yield on the 10-year US government bond, also called the highest level in ten years, is trading at 3.13 percent at closing time on Friday. But interest rates have fallen steadily recently due to fears of a recession.
The long-awaited consumer confidence report
The interest rate is often referred to as the most important interest rate in the world, as it is a reference to interest rates and financial figures around the world.
Central Bank Governor Jerome Powell announced several interest rate increases in the coming period, and that the rate hike is likely to be 0.5 or 0.75 percentage points during the July meeting. Last week, it raised the interest rate by 0.75 percent.
On Friday afternoon, strong home sales numbers came in surprisingly and the final report from the University of Michigan on consumer confidence for June was exactly as expected.(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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