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The three leading stock indices on Wall Street rose markedly in pre-trading on the last trading day of the week. During opening hours, the Dow Jones rose around 0.56 percent, the S&P 500 was up about 0.88 percent, while the Nasdaq rose around 1.5 percent. At closing time on Friday it looks like this:
- The Dow Jones was down 0.14 percent.
- The S&P 500 is up about 0.21 percent.
- Nasdaq is up 1.43 percent.
It comes after a broad and sharp fall on Thursday triggered by concerns about slowed economic growth. The Dow Jones fell 2.41 percent on Thursday. The S&P 500 fell 3.24 percent, while the Nasdaq closed down 4.08 percent.
This week, the S&P 500 and technology-heavy Nasdaq indexes have fallen six percent each, while the Dow Jones has fallen about five percent. The industry-heavy Dow Jones index fell below 30,000 points on Thursday afternoon, which is the lowest level since January last year.
– It is the fear that the central banks will take too hard to calm the inflation that characterizes the market, said chief strategist Erik Bruce in Nordea to DN Thursday afternoon.
The S&P 500 and Nasdaq are both in the bear market area, down about 24 percent and 34 percent from the record highs in January and November, respectively. The Dow index is around 19 percent below the record high in January.
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Trippelheving
On Wednesday night, the triple interest rate hike from the US Federal Reserve became a fact. Until the start of this week, there were broad expectations of only a double increase, before a Wall Street Journal article created big waves with information that the Fed rated a quarter of a percentage point on top of that.
Expectations were then adjusted up to a triple increase, ie 0.75 percentage points. Governor Jerome Powell did not disappoint either, delivering the largest single increase since 1994.
Federal Reserve Chairman Jerome Powell on Friday reiterated the central bank’s commitment to bring down inflation, saying it is crucial to the global financial system, according to CNBC.
– The Federal Reserve’s strong commitment to our price stability mandate contributes to the widespread confidence in the dollar as a valuable asset. To that end, my colleagues and I are strongly focused on getting inflation back to our two percent target, said Powell from the podiumfor a Fed-sponsored conference on the global role of the US currency on Friday.
Federal Reserve Chairman Jerome Powell on Friday reiterated the central bank’s commitment to bring down inflation, saying it is crucial to the global financial system. (Photo: Mark Makela / AFP / NTB Scanpix)
In the UK, the Bank of England raised interest rates by 0.25 percentage points on Thursday afternoon, the fifth consecutive increase. The UK policy rate is now 1.25 percent.
Like the Fed, the British central bank is also aware that interest rates must rise to overcome the high inflation, which in the United Kingdom in April was nine per cent. This is the highest level in 40 years, writes CNBC. Inflation in England is expected to be eleven percent by October.
Also in Switzerland, which has not had interest rate rises since 2007, the central bank came with the first increase in 15 years on Thursday, when the key interest rate was raised to minus 0.25 per cent, from minus 0.75 per cent.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms se her.
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