Key Wall Street indexes are gaining momentum with buyers returning strongly after three days in a bid to make up for lost ground last week when the market suffered its worst losses in more than two years.
Last week was the worst for the S&P 500 since March 2020 when the US was facing the first wave of the coronavirus pandemic. The Dow Jones industrial average closed last week with total losses of 4.8%, the S&P 500 lost 5.8%, while the technology Nasdaq fell 4.8%.
The heavy losses followed a global wave of concern about the prospects for global growth amid the inflation rally that is forcing the world’s largest central banks to make successive and aggressive interest rate hikes.
The Federal Reserve raised interest rates by 75 basis points in its last session, the largest increase since 1994, with most analysts expecting the central bank to raise interest rates by another 75 basis points. next month. The member of the Board Fed Chairman Christopher Waller said in a recent speech that he would like to see another 75 basis point increase in interest rates at the next monetary policy meeting of the bank.
Indicators – Statistics
On the board, the Dow Jones gained 480.11 points or 1.61% to 30,368.89 points, while the S&P 500 strengthened 79.68 points or 2.17% to 3,754.52 points. The technology Nasdaq adds 272.10 points or 2.52% to 11,070.45 points.
Of the 30 stocks that make up the Dow Jones industrial index 27 are moving with a positive sign and only three with a negative. The biggest gainers are Chevron with gains of $ 5.27 or 3.55% at $ 153.65, followed by Apple with $ 135.98 with gains of 3.36% and JPMorgan Chase with gains of 3.08 % at $ 116.52
On the other hand, the three stocks with the biggest losses are Walt Disney (-0.24%), 3M (-0.15%) and Travelers (-0.08%).
Meanwhile, Goldman Sachs gives the US economy a 30% chance of falling into recession next year, up from the previous forecast of 15%, amid record inflation and weak macroeconomic data fueled by the Russian invasion of Ukraine.
The data released today by the Federal Reserve Bank of Chicago showed that the US economy recorded a significant slowdown in May, compared to the previous month.
In particular, the Fed Chicago National Activity Index plunged to 0.01 from the revised level of 0.40 points in April.
Kellogg jumped 2.6% in business developments after the food company announced plans to split its operations into three different directions.
Source: Capital
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