Strong upward reaction on Wall Street with a jump of over 2% for the indices

The Wall Street indices rallied today, with buyers going on the counterattack, returning from the three days and after the heavy losses of the previous week, which formed several buying opportunities.

It is recalled that the market remained closed on Monday, while last week was the worst for the S&P 500 index since March 2020, when the US was facing the first wave of the coronavirus pandemic. In particular, the S&P 500 lost 5.8%, while the industrial Dow Jones and the technology Nasdaq fell 4.8% each.

The heavy losses followed a global wave of concern about the prospects for global growth amid the inflation rally that is forcing the world’s largest central banks to make successive and aggressive interest rate hikes.

The Federal Reserve raised interest rates by 75 basis points in its last session, the largest increase since 1994, with most analysts expecting the central bank to raise interest rates by another 75 basis points. next month. In this climate, the President of the Federal Reserve Bank of Richmond, Thomas Barkin said today that the US Federal Reserve should raise interest rates as quickly as possible without causing undue damage to financial markets and the economy in order to tackle inflation.

Indicators – Statistics

On the board, the Dow Jones gained 641.47 points or 2.15% and closed at 30,530.25 points, while the S&P 500 strengthened by 89.95 points or 2.45% to 3,764.79 points. The technology Nasdaq added 270.95 points or 2.51% to 11,069.30 points.

Of the 30 stocks that make up the Dow Jones industrial index, 27 closed with a positive sign and only three with a negative. The largest gain was recorded by UnitedHealth Group with gains of $ 28.26 or 6.25% to $ 480.32, followed by Chevron to $ 154.67 with a rise of 4.24% and Merck & Co. with gains of 4.04% at $ 88.04.

The shares with the biggest losses were Walt Disney (-1.10%), Home Depot (-0.57%) and Boeing (-0.04%).

In the meantime, the Goldman Sachs gives 30% chance to plunge the US economy into recession next year, more than the 15% previously forecast, amid record inflation and weak macroeconomic data fueled by the Russian invasion of Ukraine.

The data released today by the Federal Reserve Bank of Chicago showed that the US economy recorded a significant slowdown in May, compared to the previous month.

In particular, the Fed Chicago National Activity Index plunged to 0.01 from the revised level of 0.40 points in April.

Kellogg jumped 2.6% in business developments after the food company announced plans to split its business into three different directions.