Wall Street’s main stock indices closed with strong increases yesterday, due to expectations that the United States Federal Reserve has reached the end of its monetary tightening campaign, and due to a series of reports from optimistic companies that contributed to the bullish mood.
The S&P 500 index gained 80.30 points, or 1.9% – its biggest daily gain since late April – to 4,317.77 units; while the technological Nasdaq rose 233.40 points, or 1.8%, to 13,294.87 units. Meanwhile, the Dow Jones Industrial Average added 566.04 points, or 1.7%, to 33,840.62 units.
The Fed held interest rates steady on Wednesday, as expected, and while Chairman Jerome Powell left the door open to further tightening, he also acknowledged the impact of the recent rise in bond yields on the economy. economy.
The comments, which were perceived as dovish, sent U.S. Treasury yields tumbling, supporting stocks.
“Powell’s comments at yesterday’s press conference were what everyone wanted to hear,” said Justin Burgin, vice president of equity research at Ameriprise Financial.
Burgin also pointed to better-than-expected earnings reports. Although forecasts for the current quarter have been weaker than expected, he maintained that analysts are still forecasting growth.
After the stock market crash in October, “the stage was set for a relief rally,” said Emily Leveille, portfolio manager at Thornburg Investment Management. Investors were also reassured by hints from the Fed that it might pause rate hikes for now, she added.
Source: Ambito
