US equities rose on Friday after a week-long loss across the major indices.
Traders welcomed the release from the brutal spring sellout, which left no corners of the market intact. This week has caused some shocks to the market.Data showed Inflation is still hot, A disappointed investor.Cryptocurrency that plunged later So-called stablecoin crashed unexpectedly.. Thursday’s S & P 500 flirts in the bear market territory 20% below its recent highs, with the Dow Jones Industrial Average recording weekly losses for seven consecutive weeks, the longest consecutive in more than 20 years. It’s a loss.
The Nasdaq Composite has surged about 3% in recent trading, while the S & P 500 has risen 1.8% and the Dow Jones Industrial Average has risen 270 points (0.9%). All three indexes were down from the highs seen early in the session.
High movement continued Thursday late session rally This helped the Nasdaq Composite make a profit. Risk on sentiment brought to the international stock market overnight. By Friday morning in the United States, investors had scooped up stocks of tech companies that had been beaten before the opening bell.
Still, traders and investors didn’t want to hit the bottom.
“Is this the lowest price this year? I’m skeptical,” he said. Andrew Slimmon, Senior Portfolio Manager at Morgan Stanley Investment Management, said. “I wouldn’t be surprised if there was a fear of deeper growth sometime this summer.”
Investors are now facing problems not seen in decades, as inflation has remained high for nearly 40 years. Many traders believe that recessions are more likely to occur as the Federal Reserve seeks to curb price pressures.Many institutional and private investors alike are beginning to downplay the idea that the Fed can design. So-called soft landingMeanwhile, inflation will fall, but unemployment will remain low and the economy will continue to grow.
Slimmon said he believes there will be more short-term pain in equities, but he is optimistic in the long run and, citing a fairly bright earnings report, believes the market will recover by the end of the year. .. According to FactSet, more than three-quarters of S & P 500 companies report a positive surprise in first-quarter earnings per share, as they did in the previous quarter.
“I spend a lot of time talking to companies and listening to company conference calls. I can say that I can’t sum up the weaknesses of companies found in the stock market. That’s what Slimmon said. He said.
On Thursday, Federal Reserve Chairman Jerome Powell said he would be able to curb inflation. Short-term impact on the economy“The process of reducing inflation to 2% will involve some pain,” he said on a marketplace radio show.
He reiterated that a further half-percentage increase is likely appropriate at future meetings, but if economic data require such measures, the central bank will consider a larger increase. He said he could.
This week’s inflation report gave little comfort to investors, especially after the data showed that price pressures were largely broadly based. Despite falling gasoline prices, rising prices for groceries, dining out, air travel and other services surprised investors who wanted inflation to peak.
This has forced many to sell their riskier investments and build them into assets that are perceived as safer. In particular, growth and technology stocks, which are usually hit by high interest rates, plummeted. But the feelings of risk-off spread elsewhere, Leads to a sharp plunge in cryptocurrenciesthat too.
“This week was like the cornerstone of the market. The mood is from assessing whether we can live in a higher interest rate economy. [investors] Question: “Are we on the verge of recession?” Said Florian Yelpo, Macro Head of Lombard Odie Investment Manager.
But on Friday, tech stocks were one of the leaders in the rebound.
With an advanced 5.4%
It increased by 4.5%.
Stocks fell 8.5%
chief executive officer
He tweeted that his deal to buy a social media company and keep it private is “temporarily pending”. Details of the amount of fake accounts On social media platforms. Musk later tweeted that he had committed to the acquisition and helped Twitter. Reduce pre-market loss by 20% or more.. Tesla’s share has recently risen 7%.
Cryptocurrency exchange FTX founder Sam Bankman-Fried surged 24% after disclosure He bought a 7.6% stake At a securities company.
The language learning platform surged 39% after reporting revenue and monthly active user spikes.
Bitcoin rose from the ET level of $ 28,572.24 at 5 pm on Thursday to about $ 30,419 on Friday. In addition, elsewhere in the crypto market, the troubled stablecoin TerraUSD traded at 11 cents and continued to lower the spiral. TerraUSD broke its typical peg to $ 1 last weekend. Wave of token sales.. Her sister token, Luna, also plummeted this week, trading from over $ 60 on Monday for half a penny.
In the bond market, benchmark 10-year Treasury yields rose from 2.815% on Thursday to 2.928%, reversing the four-day yield slide that occurred when investors piled up on bonds. When bond prices fall, yields rise.
Overseas stock markets also traded high on Friday. In Europe, Pangea’s Stocks Europe 600 rose 1.6%. In Asia, Hang Seng Bank in Hong Kong rose 2.7% and Nikkei 225 in Japan rose 2.6%. Shanghai Composite rose 1%.
— Caitlin Ostrov contributed to this article.
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