Strong upward reaction on the Wall after the collapse of S&P in bear market

LAST UPDATE 20:50

The Wall Street index started the week with strong gains as investors drew on the encouraging statements of US President Joe Biden about the possibility of reconsidering the tariffs against China.

The indexes have been in a downward spiral in recent weeks, with the Dow Jones Industrial Average completing eight consecutive weeks of falling last week in its worst run since April 1932. The broader S&P 500 and tech Nasdaq completed seven weeks of decline, marking worst series since March 2001.

The S&P 500 crashed into a bear market at the close of last week, recording total losses of more than 20% from its last high, but finally managed to regain the positive sign and close with marginal gains on Friday.

Market turmoil follows a global wave of concern over the risk of the West’s largest central banks turning sharply to tighter monetary policies to curb inflation to derail the economic recovery, leading to a recession. The US Federal Reserve and the Bank of England have already raised interest rates in succession, and the European Central Bank is preparing to abandon its zero-interest rate policy over the summer.

Indicators – Statistics

On the board, the Dow Jones gained 610.45 points or 1.95% to 31,872.35 points, while the broader S&P 500 added 68.11 points or 1.75% to 3,969.46 points. The technological Nasdaq strengthened by 135.20 points or 1.19% to 11,489.81 points.

Of the 30 stocks that make up the Dow Jones industrial index 26 are moving with a positive sign and four with a negative. JPMorgan Chase was up $ 8.58, or 7.31%, at $ 125.92, followed by Goldman Sachs Group at $ 319.41, up 4.11%, and Caterpillar at $ 3. , 70% to $ 205.14

On the other hand, the three stocks with the biggest losses are Dow (-1.72%), Home Depot (-0.56%) and Nike (-0.50%).

US President Joe Biden’s statements that the tariffs imposed on China during Trump’s presidency are being assessed today and there will be a discussion with the Minister of Finance Janet Yellen when she returns from her trip abroad.

“We are considering it, we did not impose these duties. They were imposed by the previous government and are under evaluation,” Biden said, leaving open the possibility of some duties being reduced.

Reducing or suspending some tariffs could boost the economy at a time when pressure from Fed interest rate hikes is becoming more and more pronounced. At the end of the week, moreover, investors will have the opportunity to evaluate the latest data on the course of prices as the price index for personal consumption, the Fed’s preferred index for inflation, will be announced. The data are at the heart of the central bank’s analysis of monetary policy decisions.

In business developments, shares of VMware Inc. jump more than 20% amid reports that chip company Broadcom Inc. is in conspiracies to acquire the business cloud computing company.