The major sector indices of the S&P 500 rose, led by gains in communication services and technology.
“What’s behind today’s rally could just be the pressure that we’ve seen in the last couple of weeks when pricing in the markets that are forming today has been under so much pressure, given the stance that the Federal Reserve is taking.”said Keith Buchanan, a portfolio manager at GLOBALT Investments in Atlanta.
The Labor Department report showed that initial claims for jobless benefits increased by 9,000, to a seasonally adjusted 225,000, in the week ending December 24. The report hinted at some cooling off in an otherwise tight labor market, bolstering hopes that the Fed will ease its aggressive monetary policy.
Mega-cap shares of Apple Inc, Alphabet Inc, Microsoft and Amazon.com Inc rose after falls in recent sessions.
The Fed’s aggressive rate hikes hit equities this year, with the S&P 500 declining 19.6% and the Nasdaq losing almost 33% of their value.
Wall Street’s main indexes had fallen more than 1% on the day before and the Nasdaq hit a closing low for 2022, as rising COVID cases in China and geopolitical tensions added to fears of a likely recession. in 2023.
Source: Ambito
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