On Friday's Wall Street, inventory increased further as the S&P 500 had its best day in two years and had a second week increase in the last 12 weeks. It was. Relief from the brutal sold-out of this year's market.
The benchmark index rose 3.1%, with technology and banks leading a wide range of rallies. The S&P 500 recorded an increase of 6.4% that week, erasing the cruel loss it took a week ago, but still 20% the record set earlier this year. } It is below.
The Dow Jones Industrial Estate average rose 2.7% and the high-tech-intensive Nasdak rose 3.3% . Both indexes also recorded weekly profits that more than compensated for last week's losses.
Equity this week as investors speculate that federal reserves may not need to raise interest rates as aggressively as previously thought to fight to control inflation. Has recovered.
Profit from the annual fall of Wall Street caused by reversing the financial support that the federal government and other central banks put into the market through pandemics. It is recovery. In the hope of defeating high inflation, the Central Bank has made other moves that could raise interest rates, hurt investment prices and slow the economy enough to cause a recession. Many economists anticipate further movements.
"It was a good week," said Randy Frederick, Managing Director of Trading and Derivatives at Charles Schwab. "It's rare. At least in 2022, we had only two weeks of net positives. It's very similar to what we saw around the end of May, and of course one of them has disappeared.
S&P500 increased by 116.01 points to 3,911.74. Dow rose 823.32 points to 31,500.68. Nasdak rose 375.43 points to 11,607.62.
Record low levels of consumer sentiment
Some parts of the US economy, especially the employment market, are still hot, but there have been some disappointing signs lately. increase.
Friday's report confirms that consumer sentiment, especially hurt by high inflation, has fallen to its lowest point since Michigan University began holding records.
Another weakness this week suggested that the US manufacturing and service sector was not as strong as economists thought.
This weakening of data raises concerns about the strength of the economy. But, as it may seem paradoxical, they can also be good for the financial market.
Consumer demand may be reduced and inflation may be promoted. This ultimately means that the federal reserve does not have to be so aggressive in raising rates. And interest rates facilitate the trading of everything from stocks to cryptocurrencies.
"Sure, there's a chill in many areas. Gas purchases are declining and home prices seem to be chilling entirely," Frederick said. "To me, all this speaks to the fact that what the federal government is doing now seems to have at least some impact. I'm not sure if it's enough to reduce inflation right now. . "
