Wall Street indexes closed the last session of a chaotic week in financial markets higher, with Fed Chairman Jerome Powell helping a little by saying that it is not on the table, at least for now, the possibility of interest rate hikes above 50 basis points. This despite the fact that inflation remains at very high levels.
The Dow Jones industrial index closed at 1.47% to 32,196.66 points and the Standard & Poor’s 500 increased by 2.39% to 4,023 .89 points – thus returning to the level of 4,000 points and reducing the week’s loss to less than 0.5%.
After falling almost 20% from its last record and having been almost enter the “bear market”, the S&P 500 managed to recover today. Even so, it was not enough for a positive balance in the set of five sessions and marked the sixth consecutive week in the red – the longest series of declines since June 2011.
In turn, the technological Nasdaq Composite ended up rising 3.82% to 11,805 points. The index achieved a good performance due to the rally of giants such as Apple, Microsoft and Amazon – but the fall of Twitter prevented greater gains.
The shares of the micromessaging social network closed down 9.69 % to $40.72 after Tesla CEO Elon Musk said his takeover bid was “temporarily on hold”. During the session, they sank 15%.
For a market fearful that a more aggressive monetary policy by the Federal Reserve could plunge the country into recession, Powell’s statements ended up calming the nerves and stocks on the other side of the Atlantic performed well.
Despite today’s rallies, many investors are not convinced that the indices have already bottomed out, this after a selloff that eclipsed 10 billion US dollars in 18 weeks, according to Bloomberg.