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Photo: Bloomberg LP – |
US stocks made a dramatic return on Monday after investors turned to the technology sector, writes CNBC.
The blue chip index Dow Jones Industrial Average added 101 points to 34,366.67 points, recording growth for the first time in seven days. At some point in the day, it had fallen by 1,115 points. The broad index S&P 500 ended the day with 0.3% up to 4410.50 points.
The technological Nasdaq Composite increased by 0.6% to 13,855.13 points. He went green after being down 4.9% for most of the session. The Russell 2000 index also ended the session with growth.
At the beginning of the stock market day on Monday, investors turned their backs on technology stocks, after a month of fears that the Federal Reserve will soon tighten its policy aggressively. But those stocks recovered at the end of the day as well Meta, Amazon and Microsoft turned out to be green.
Despite the recovery, the S&P 500 is down 7.5% this month, on track to record its worst monthly performance since March 2020. Initially, the devastation this year focused on the Nasdaq and technology stocks as investors withdrew from the stock , whose estimates seem less attractive due to the possible rise in interest rates.
Meanwhile, investors are waiting the Fed meeting, which will begin on Tuesday and end on Wednesday. Market participants will look for signals on how much the central bank will raise interest rates this year and when it will start raising them.
According to Ann Miletti, director of Allspring Global Investments, everyone’s biggest concern is how the Fed will react.
“There will be a lot of turbulence as we move through the next few months,” she added.
The Federal Open Market Commission, which sets interest rates, is meeting this week amid expectations that it will not act at its January meeting, but will take the first of several interest rate hikes until March. In addition, the Fed is expected to complete its monthly asset purchase program in the same month.
During the press conference after the meeting, the chairman of the central bank Jerome Powell can give more hints about the future actions of the Fed.
Investors are also monitoring geopolitical tensions as Russia strengthens its military presence on the border with Ukraine. President Joe Biden will talk to European leaders about fears of a potential Russian invasion of Ukraine.
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