Wall Street's key indices are as slowing economic growth and signs of recent declines in commodity prices have eased expectations of the Federal Reserve's interest rates. It showed a big rise on Friday. -Hiking plan.
The Dow Jones Industrial Average jumped 823.32 points (2.7%) to 31,500.68. The S&P 500 rose 116.01 points (3.1%) to finish at 3,911.74 points and the Nasdaq rose 375.43 points (3.3%) to 11,607.61. The 30 Dow Jones Industrial Averages rose 5.4% in a week, while the Nasdaq and S&P rose 7.5% and 6.5%, respectively.
Financial markets are caught up in concerns that the Fed's sharp rate hike to curb high inflation in 40 years could cause a recession. Investors measure when the market could bottom out after benchmark S&P 500 fell by20% from January's closing priceearlier this month. The market has confirmed the general definition of bears.
"Some of the moves are exhausting to the seller and do not require the transfer of capital," said Sean Cruz, head trading strategist at TD Ameritrade.
"This may be a bit of a relief rally," Cruz said. "But for now, I don't recommend anyone starting with both hands, because I've seen this over and over again where these things can turn around pretty quickly."
US consumer sentiment fell to record lows in June But Americans have seen a slight improvement in their inflation outlook, according to a Friday survey. Thursday's data show a slowdown in US business activity in June.
It was the sharp drop in commodity prices this week that helped alleviate inflation concerns. The Refinitiv / CoreCommodity Index, which measures prices for energy, agriculture, metals and other commodities, peaked in early June for the first time in years and then fell to a low in about two months on Thursday.
Federal Funds Futures Traders are currently pricing the benchmark rate to rise to about 3.5% by March. This is about 4% higher than last week's forecast.
"Forecasting future rate hikes is part of an equation that will make today's stock market so strong," said Peter Tus, president of Chase Investment Adviser in Charlottesville, Virginia. Stated.
Banks Equities After the Fed's annual "stress test" shows that creditors have enough capital to survive a severe recession , Repulsed.
In company news, FedEx shares surged after parcel delivery companies released stronger-than-expected full-year profit forecasts.
