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The mood among investors on Wall Street was upward after last week’s sharp fall in the stock market.
- The broad S&P 500 index rose 3 percent.
- The industry-heavy Dow Jones index rose 2.6 percent.
- The Nasdaq technology index rose 3.3 percent.
Before trading began on Friday, the S&P 500 was up 3.3 percent for the week and the Nasdaq up four percent for the week, while the Dow Jones had risen 2.6 percent. But so far in June, all the leading stock market indices are down well over five percent.
The stock market may appear to have stabilized, at least in the short term. But the experts are pessimists in the slightly longer term and warn of recession, ie economic downturn, and fear and trembling on the stock exchanges.
– Recession talk remains the focus of Wall Street, and that means that no matter what upswing Wall Street has, it will probably be short-lived, says senior market analyst, Ed Moya, in Oanda in a note, according to CNBC / TDN Direkt.
A possible contributor to the good weather mood before the weekend may have been statements from the head of the St Louis branch of the Fed, Jim Bullard. He is known as the biggest “hawk”, ie most aggressive in bringing down inflation, and said that the fear of recession was exaggerated, Bloomberg writes.
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Tug of war
Thus, the market has begun to adjust so that there will be no more interest rate hikes after December.
– There is a kind of tug of war over fears of a global slowdown in growth and a recession, and the potential that much of this has already been priced in, says chief strategist Emily Roland in John Hanckock Investment Management to the news agency.
The cryptocurrency bitcoin seems to have stabilized above 20,000 dollars after the dramatic fall of over 67 percent since November last year. Bitcoin is traded on Friday afternoon for a little over 21,000 dollars, which is almost unchanged for the day.
The yield on ten-year US government bonds, also called the ten-year high, is trading at 3.13 percent at closing time on Friday. But interest rates have fallen steadily in recent times due to fears of recession.
This is what you should know about inflation Finance editor at DN Terje Erikstad tells you what you need to know about inflation. 01:23 Published: 18.06.21 — 12:39 –
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