US stock markets turned positive

US stock markets turned positive

It seems that pessimism has taken hold among investors in the United States, and for the fourth day in a row, it is beginning to recede. The sudden brake on Wall Street comes after a sustained and strong rally so far this year.

All afternoon, investors struggled to find direction, but later in the evening things turned around and that’s how it ended up in the leading US stock market indices:

  • The broad S&P 500 index rose 0.37 percent.
  • The Dow Jones Industrial Average fell 0.01 percent.
  • The Nasdaq Technology Index rose 0.95 percent.

The Nasdaq fell more than 1 percent in regular trading on Wednesday, while the Dow Jones and Standard & Poor’s 500 closed down 0.3 percent.

Wednesday’s drop came after Federal Reserve Chairman Jerome Powell said more interest rate hikes are likely to come to fight inflation. Powell’s message was a cold shower for the market as many had hoped the central bank was nearing the end of its tightening cycle, according to CNBC, reproduced by TDN Direkt.

– Janet Moye, head of market analysis at RBC Brewin Dolphin, said recession risks are higher if prices have been high for a longer period of time, but risky assets do not reflect this.

She adds that markets are re-evaluating whether more risk is warranted after the rally so far this year.

Otherwise, the market is looking forward to Powell’s submission of his Semi-Annual Monetary Policy Report to the Senate Banking Committee on Thursday.

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Statistics from the US Department of Labor showed on Thursday that the number of first-time applicants for unemployment benefits in the United States (unemployment claims) reached 264,000 last week. In advance, the number of first-time applicants was expected to be 260,000, according to consensus forecasts from Trading Economics.

Everyone sets interest rates

The stock market drop in the US comes after the Bank of Norway, the Bank of England and the central banks of Switzerland and Turkey all raised interest rates.

Here at home, the key interest rate has been raised by 0.5 percentage point, the same as in Great Britain. The Swiss central bank, the Swiss central bank, raised the interest rate by 0.25 percentage points, while Turkey’s interest rate was raised by a whopping 6.5 percentage points.

The two-year and 10-year US government interest rates were almost unchanged from Wednesday.

The price of oil fell slightly during the evening and North Sea oil was trading at $74 when US exchanges closed.(conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We’d like you to share our statuses using links that lead directly to our pages. Reproduction or other use of all or part of the Content may be made only with written permission or as permitted by law. For more terms see 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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