New York (CNN Business)Bad news on Wall Street is a good news day. Equities will skyrocket, ending the week with a solid rise after major economic reports hit record lows atconsumer confidence levels.
Investors helped the University of Michigan's decline in consumer sentiment in June. why? Growing concerns about a recession mean that the Federal Reserve, which has begun to aggressively raise interest rates to combat inflation, will reverse the course by the end of 2023 and lower interest rates again. It may mean that there is a possibility to deal with it. In recession. The
Dowsurged by more than 650 points (2.2%) on Friday noon trading and 2.6% in trading weeks with shortened holidays. The US market closed on Monday in compliance with Juneteenth.
S&P500andNasdaqalso increased by more than 2%. S&P 500 has risen by more than 3% in the last four days, while Nasdaq has risen by 4%. All three indexes are on track to snap a three-week losing streak, but each fell sharply in June.
"It was very volatile. The market is volatile. There has been a historically significant rate hike from the Fed," said Jake Jolly, senior investment strategist at BNY Mellon Asset Management. "Growth is slowing. We know it's happening, but we're also aggressively tightening."
Jolly said due to weak economic data. He added that the team believes that a recession is more likely than a so-called economic landing.
But Friday wasn't all bad news. Investors may also have been backing for a surprisingly strong housing report.
May new home sales rose nearly 11%, well above expectations, withrising mortgage ratesand higher prices, many Buying a home is a dream for Americans.
Earnings also pushed up stock prices as two consumer companies reported good performance. Cruise Line ShareCarnival(CCL)andCarMax (KMX)both surged after each reported an improvement in sales.
Carnival results show a wide rise in leisure stocks, along with competitorsRoyal Caribbean (RCL)Helped to stimulate. AndNorwegian(NCLH)Both are skyrocketing. Casino stocks and airlines have also skyrocketed.
FedEx (FDX)also after the shipping giant showed a bullish outlook for the rest , Soared. Year.
And late Thursday, thanks to the Fed's so-called stress test results, Mega Bank stocks became the winner. The Federal Reserve has submitted a clean health bill to the top financial institutions in the country, paving the way for many major banks to buy back more stock and increase dividends.
Goldman Sachs share(GS)rose by more than 5% to become one of the top The Dow Jones Industrial Average is now. JP Morgan Chase(JPM)increased by almost 3%.
