October 1, 2022

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Wall Street with a broad recovery - Technology stocks rose sharply

Wall Street with a broad recovery – Technology stocks rose sharply

With interest rates likely to rise three more times in the US, all three Wall Street indexes opened cautiously from the start on Wednesday morning US time. But throughout the day, all three indicators were clearly positive. The Nasdaq tech index in particular rose sharply after a seven-day slump.

At the closing time of 22:00 Norwegian time, the US stock exchanges ended as follows:

  • The broad S&P 500 index rose 1.84 percent
  • The Dow Jones Industrial Average rose 1.40 percent
  • The technology-heavy Nasdaq rose 2.14 percent

interest rate increase

The US Wall Street Journal wrote on Wednesday that Central Bank Chairman Jerome Powell’s goal of lowering inflation even if it leads to higher unemployment appears to have put the central bank on the right track to raise interest rates by 75 basis points (0.75 percent) in September. .

In this case, it would be the third consecutive increase of 75 basis points. It was previously expected to raise the interest rate by 50 basis points (0.5 percent).

But Deputy Central Bank Governor Lyle Brainard also delivered a speech on Wednesday, in which both reiterated that the central bank would do what was necessary to beat inflation, and emphasized that the Fed was also aware of the risks of excessive tightening.

– She said that at some point in the tightening cycle, the risks become two-sided.

The pace and global nature of the tightening cycle, combined with uncertainty about how quickly the effects of tighter financial conditions will affect aggregate demand, creates risks associated with excessive tightening.

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Among the tech stocks that rose on Wednesday were Amazon, Tesla and Microsoft, up 2.7 percent, 3.4 percent and 1.9 percent, respectively. Apple introduced the new iPhone model on Wednesday, but it only rose 0.9 percent.

Twitter’s share rose by a whopping 6.4 percent. The stock rose after the news that a Delaware judge is denying Tesla CEO Elon Musk’s attempt to delay the trial surrounding his attempt to buy Twitter.

The trial is scheduled to begin in October.

It appeared in Europe too

All of Europe’s leading stock exchanges were in the red on Wednesday until the opening of Wall Street. Then the German DAX index, Deutscher Aktienindex, turned positive. So did the French indicator CAC, Cotation Assistée en Continuden. While Britain’s FTSE, the FTSE stock index, did not rise towards the end and fell only 0.9 percent.

In the Oslo Boroughs, prices fell further and ended with a decrease of 2.29 percent, accompanied by a drop in the price of oil to below $ 90 a barrel.

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