Investors sent all the major US stock market indices solidly higher on the last trading day of the week, thus the stock markets ended a particularly turbulent week with high volatility with a rally.
Leading US stock exchanges woke up between minus and above immediately after the exchange opened on Friday, before a good weekend mood took hold throughout the evening, with a fitting boost at the end.
This is how it ended on Friday:
- The broad S&P 500 index rose 2.41 percent.
- The Dow Jones Industrial Average rose 1.66%.
- The Nasdaq Technology Index rose 3.09 percent.
There has been a real roller coaster on Wall Street this week, and the three major indices have been marked by significant volatility. The interest rate meeting earlier this week is largely responsible for the fact that investors are now worried. The US Federal Reserve has indicated as clearly as possible that we are facing rapid and frequent interest rate increases, with the first rate hike in March.
In many trading days, the S&P 500, Dow Jones and Nasdaq all opened with revival and optimism – before turmoil and nervousness took over.
This was also the case on Thursday. The three major indices rose significantly at the opening. However, the wind quickly turned, and when the trade ended, it shone red all over the line.
Declaration of war risk and interest rates
The turmoil that has characterized the markets this week is rooted in the signals that came from the US Federal Reserve on Wednesday. On Wednesday night, Norwegian time, the Fed indicated that it would raise interest rates soon, which should mean that the first rate hike will come as early as March.
– We also saw yesterday that the stock market fell upwards before reversing again. This indicates that the market is still struggling to find the level after this week’s hawkish Fed rate announcement, Handelsbanken Chief Economist Marius Gunsholt Hof wrote in a morning report from the bank.
In addition, geopolitical turmoil related to tensions between Russia and Ukraine is making investors uncomfortable. The conflict increases the risk that Russia will restrict gas exports to Europe. In this case, this may exacerbate the energy crisis and increase inflation. This, in turn, affects purchasing power and economic activity.
Earlier this week, the price of oil hit a record $90, something that Nadia Wiggin, Energy Analyst and Barreto Partner, was not surprised.
We were waiting for the oil price index to reach $90 per barrel, as the actual oil market is under severe pressure in terms of supply and demand. At the same time that the conflict between Ukraine and Russia is escalating, Wiggin told DN on Wednesday.
supply chain problem
Several US giants this week presented their quarterly reports.
Tech giants Apple and Tesla were able to report record results. At the same time, persistent problems in supply chains and a shortage of memory chips were also revealed.
Even though Tesla beat analysts’ expectations for the company’s sales, investors pushed the stock down more than 11 percent on Thursday. But on Friday, the stock recovered a bit and breathed 2.08 percent.
Investors reacted very positively to Apple’s impressive results late Thursday after the stock market closed, and Apple’s stock rose nearly seven percent on Friday.
Chevron, one of the world’s largest oil and energy companies, also provided results this week, but unlike Apple and Tesla, Chevron failed to meet market expectations. Prior to that, analysts believed the energy company would earn $3.12 per share, according to CNBC. However, the result was only $2.56 per share, despite record and high energy prices in the fall and winter. Investors didn’t like it much, sending Chevron stock down 3.46 percent on Friday.(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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