All three of Wall Street’s major indexes rose more than 1% on Thursday, as investors considered the U.S. central bank’s path to interest rate hikes and lower concerns about the prospects of a Russian default after creditors received payments.
The S&P 500, Dow Jones and Nasdaq posted their biggest three-session percentage gain since early November 2020 after news increased risk appetite in a market already benefiting from bargain hunting. The S&P 500 also witnessed its third straight day of gains of more than 1%.
News from Russia about payouts and the breaking of technical “upward” decline lines in indices including the S&P and Nasdaq boosted stocks, according to Michael James, managing director of equity trading at Wedbush Securities.
“It’s giving investors an increasing level of cautious optimism, which is a change from the significant pessimism we’ve been experiencing since early January,” James said.
“People have become more comfortable with the fact that interest rates are going up. This has been talked about ad nauseum by (Fed Chair Jerome) Powell since early December,” he said.
“The fact that there were no significant negative surprises in the Fed’s plans after the meeting and Powell’s comment gave people the feeling that we may have seen the worst that is going to be in the short term.”
The S&P 500 index closed up 1.23% at 4,411.67 points. The Dow Jones rose 1.23% to 34,480.76 points. The Nasdaq Composite technology index rose 1.33% to 13,614.78 points.
Source: CNN Brasil
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