The top three US stock indices reversed previous losses and rose. Wall Street amplified those gains when Fed Chairman Jerome Powell, during his press conference, was optimistic about the US economic recovery and willing to raise rates when necessary to control inflation.
“What the markets are saying is that as the Fed is increasing its ‘taper’, they may feel that inflation is under control,” said Tom Martin, senior portfolio manager at Globalt Investments. “They have done what was expected. It is going to increase the credibility of the Fed and that will be – overall – from neutral to positive for the markets.”
Wall Street was down slightly this week after the S&P 500 index hit an all-time high at the close on Friday, as concerns about the new omicron variant of the coronavirus have given investors pause.
According to preliminary data, the S&P 500 gained 75.48 points, or 1.63%, to 4,708.37 units, while the Nasdaq Composite advanced 330.94 points, or 2.17%, to 15,568.58 units. The Dow Jones Industrial Average rose 390.19 points, or 1.10%, to 35,934.37 points.
Inflation and rising interest rates have become one of Wall Street’s main concerns in recent months. Data from Tuesday showed producer prices rose more than expected in the 12 months through November, posting their biggest increase since 2010.
“Hedge funds positioned themselves for the worst, in terms of the worst for equities, coming to the Fed statement,” said Michael James, managing director of equities operations at Wedbush Securities. “Today, I think, is a function of selling the expectation and buying the news.”
Technology and healthcare were among the strongest of the 11 S&P 500 industry indices.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
