“Corrective waves” are causing US stocks to rise

Sheriff Adel (Washington)

The main US stock indexes ended Friday trading in the green zone, being very close to their level of last Monday, with waves of correction continuing, despite persistent fears that the economy will world’s largest into recession.
At the end of today’s trading, the Dow Jones industrial average rose 51 points, representing 0.13% of its value, and the S&P 500 Index, which mainly reflects sectors of the American economy, added 0.47 % to it, while the increase in the Nasdaq Index, which is full of shares of technology companies and was the worst at the beginning of the week, was 0.51%.
For the week, the S&P 500 index was down just 0.04%. During Friday’s session, the index was able to briefly turn into the green zone before losing some of its gains.
At the same time, the Dow Jones and Nasdaq fell during the week 0.6% and 0.18%, respectively.
This week was the most vulnerable week of 2024 for the stock market, as the Dow Jones fell 1,000 points on Monday, and the S&P 500 lost about 3% on its worst day from 2022. … Announced at the end of last week, there are fears that the Federal Reserve has already delayed cutting interest rates, which could send the US economy into recession , among the main reasons behind the intense sales activity, along with letting go. interest rate trading on the Japanese yen from… Before hedge funds.
However, the main indicators returned to the rise as on Tuesday, as the number of positive unemployment claims, announced on Thursday, helped to ease investors’ worries about the US economy, at the same time to the Bank of Japan’s (central) announcement of its intention. to stop the rise of interest rates, So that the markets are stable.
The S&P 500 index rose 2.3% on Thursday, the best daily performance since November 2022, and the Dow Jones index, which includes 30 stocks, rose about 683 points. The Nasdaq added nearly 2.9%.
At Monday’s lows, the S&P 500 index fell, down about 10% from its all-time high, the Nasdaq index reached a full correction zone of more than 10%, as did the CBOE Volatility Index, which will Wall Street used to measure fear. In the markets, to heights last seen at the beginning of the Covid-19 pandemic and the financial crisis that coincided with it.
But investors intervened to buy stocks at low levels on Tuesday, confident that another crisis or recession is far from over.
Many analysts said Monday’s losses had more to do with hedge funds exiting long bets on the cheap Japanese yen rather than the threat of a recession.