October 1, 2022

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Stock market rally after weekly loss

Stock market rally after weekly loss

US stocks rose on Monday, at least temporarily by changing direction after more than two months of volatility and losses.

The S&P 500 rose 0.7% in morning trade, while the Dow Jones Industrial Average rose 0.4%. The technology-focused Nasdaq Composite Index rose 0.8%. The three indexes fell on friday After data showed employment growth slowed in May, although employers added 390,000 strong jobs.

Investors are still trying to weigh the positive signals from the jobs report against recent cautious economic comments from CEOs like Elon Musk from Tesla And the Jamie Damon from JP Morgansaid Naeem Aslam, chief market analyst at AvaTrade.

On top of the job market, investors are also watching economic data closely for clues about the Federal Reserve The path to raising interest rates. Fears that the Federal Reserve will raise interest rates aggressively and possibly push the economy into recession have fueled volatility in global markets this year.

As traders and consumers alike look for signs that inflation has peaked, the real problem is when inflation will drop to a more neutral rate and how much the Fed and other central banks will raise interest rates to make it happen, Siddart said. Singahi, Chief Investment Officer at IronHold Capital.

The main test for the markets will be on Friday US Consumer Price Index. The closely watched gauge of inflation is expected to rise 8.2% in May from the previous year, according to economists polled by the Wall Street Journal. Excluding food and energy, price growth is expected to cool slightly to an annual rate of 5.9% in May from 6.2% the previous month.

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Federal Reserve officials have indicated that they plan to raise interest rates by half a percentage point at next week’s policy meeting, and by the same amount again in July. Sangahi said that if they need to do more, he thinks they will, regardless of the market’s reaction.

“Until that is resolved, basically not much will change in the market,” he said.

Trading has been quieter in recent weeks as investors prepare for upcoming central bank decisions and important economic data. The Dow Jones Industrial Average fell 0.9% last week, the smallest weekly change for that index in about a month. The S&P 500 lost 1.2% last week while the Nasdaq closed 1% lower.

“It looks like we’re in some kind of wait-and-see mode,” said Craig Erlam, chief market analyst at Oanda in London. “We’ve entered a phase where a lot of interest rate increases are being priced in. A lot of slower growth is being priced in. We continue to see intraday volatility, but it appears to have leveled off.”

Amidst a string of record setbacks in the US, economists are watching for possible wave turn signals. Anna Hertenstein of the Wall Street Journal looks at how rising interest rates on high inflation, market sell-offs, and recession risks are challenging the growth of the American workforce. Photo: Olivier Doolery/AFP

shares

Spirit Airlines

rose after 6.1%

JetBlue Airways

display desalination to buy the company. JetBlue in May launched a hostile takeover of Spirit, which it had already agreed to merge with

Frontier Airlines.

Spirit shareholders are due to vote on the Frontier merger proposal on Friday. JetBlue shares are up 2% while Frontier Group shares are up 2.6%.

Tesla

Shares rose 1.3%, rebounding in part from their 9.2% decline Friday after Musk, the company’s CEO, said the electric car maker would cut 10% of its paid workforce, citing concerns about the global economy. Mr. Musk on Monday threatened to end Deal to buy

Twitter a company ,

That fell 3.7%.

Amazon.com

Shares rose 2.9 percent to $127.12. Monday will mark the first trading day since the company implemented a 20-in-1 stock split. Before the split, Amazon shares were $2,447 per share.

shares

Keurig Dr Pepper

It rose 4.4%, while

VICI . Characteristics

rose 4.7% and

on semiconductors

It rose 5.3% after S&P Dow Jones Indices said the three companies will join the S&P 500 benchmark this month.

US crude oil fell 0.3 percent to $118.45 a barrel. Oil prices have soared this year as the Russian war in Ukraine turbulent global commodity markets. The average price of regular gas in the United States rose to $4.86 over the weekend, according to AAA.

In the bond market, the yield on US 10-year Treasuries jumped to 3.028% from 2.940% on Friday, as investors sold government bonds. Yields and bond prices move inversely. Bond yields have been on the rise in recent weeks but remain below their recent high of 3.124% hit in early May.

Traders worked on the floor of the New York Stock Exchange on Friday.


picture:

Brendan McDermid/Reuters

Offshore, the British pound rose 0.4% against the US dollar to $1.2539 as Prime Minister

Boris Johnson

Set to face A A vote of confidence in his leadership on Monday. Mr Johnson’s poll ratings have plummeted amid revelations he has been partying in Downing Street during the Covid-19 lockdowns.

The UK’s FTSE 100 index is up 1.4% after being closed since Wednesday for the four-day platinum jubilee holiday, marking 70 years since the accession of Queen Elizabeth II to the throne.

The Stoxx Europe 600 Continental Index is up 1.2%. Investors in Europe will be watching the European Central Bank’s monetary policy meeting on Thursday, when it is expected to lay out its plans to liquidate bond purchases and raise interest rates. The European Central Bank is expected to raise interest rates for the first time in 11 years in July as it seeks to contain rising inflation.

Asian markets rebounded as China continued to ease Covid-19 restrictions in major cities. China’s Shanghai Composite is up 1.3% while Hong Kong’s Hang Seng is up 2.7%. Japan’s Nikkei 225 index rose 0.6%.

Write to Chelsey Dulaney at [email protected] and Paul Vigna at [email protected]

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