NEW YORK (AP) – Shares on Wall Street rose Monday afternoon after a seven -week decline that nearly ended in the bull market that began in March 2020.
The S&P 500 was up 1.8% at 3:12 pm Eastern. The Dow Jones Industrial Average was up 588 points, or 1.9%, to 31,850, while the Nasdaq was up 1.3%.
Banks have made strong gains on rising bond yields, which they rely on lending more profitable interest on loans. The 10-year Treasury interest rate rose to 2.86% from 2.77% at the end of Friday. Bank of America grew 6.3%.
Tech stocks were also able to rise significantly. Apple grew 3.4% and Microsoft 2.7%. The sector has been in turmoil in recent weeks and has caused recent major changes in the market.
VMware has risen 20.8% since it reported offering chip maker Broadcom to buy a cloud computing company. JPMorgan Chase jumped 6.9% after giving investors an encouraging update on their financial forecasts.
Retailers and some other companies that directly rely on consumer spending have caught up with the rest of the market. Amazon fell 0.7%. A series of failed reports from major retailers over the past week have raised concerns that consumers are cutting costs on a wide range of goods as they shrink due to rising inflation.
Ongoing concerns about inflation are weighing on the market and keeping major indices down. The S&P 500 benchmark has suffered its longest weekly consecutive loss since the dot-com bubble collapsed in 2001. It is close to a 20% drop from its peak earlier this year, which will put the index among the majority of workers. 401 (k) registered Bear Market accounts.
The impact of inflation on consumers and businesses is a major concern for markets, as is the Federal Reserve’s attempt to mitigate this impact by aggressively raising interest rates. Inflation caused by a sharp reduction in supply and demand exacerbated Russia’s invasion of Ukraine And its impact on energy prices. Supply chains further affected Recent series of locks in China For some large cities faced with increasing cases of COVID-19.
Investors fear that the central bank may go too far in raising interest rates or act too quickly, which could hamper economic growth and potentially lead to a recession. On Wednesday, investors will receive a more detailed overview of the Fed’s decision-making process by publishing the minutes of its most recent policy meeting.
Wall Street will also receive some economic updates this week from the Commerce Department. On Thursday, it will release its first quarter gross domestic product report and on Friday it will release data on personal income and expenses for April.
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Reported by Veiga from Los Angeles.
Source: Huffpost
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.