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Thursday, September 29, 2022

Wall Street rose, crude oil prices soared, strong economic data prompted a full rebound

New York-US stocks closed higher on Wednesday, as rising crude oil prices boosted energy stocks, a series of positive US data showed that inflation has peaked and the economic recovery is still strong, boosting investor sentiment.

As the trading day progressed, the three major U.S. stock indexes all strengthened, led by economically sensitive cyclical stocks, small-cap stocks and transportation stocks.

Although value stocks initially had the advantage, risk appetite gained momentum in the afternoon and expanded to include growth stocks.

“Today is the first time in a while that both growth stocks and value stocks have performed well. It has been the case for most of the past few weeks, and today it is both,” Horizon Investment Services in Hammond, Indiana Company CEO Chuck Carlson said. “Breadth is important, and this is what investors like to see.”

A series of economic data show that inflation is weakening and the economy is returning to normal, although supply constraints and Hurricane Ida have hindered factory output.

Import prices have experienced monthly declines for the first time since October 2020. This is the latest sign that the price surge has peaked and further supports the Fed’s position that current inflationary pressures are temporary.

Next week, the Federal Open Market Committee’s two-day monetary policy meeting will pay close attention to when the central bank will begin to reduce asset purchases.

The chart below shows the main indicators relative to the Fed’s average annual inflation target of 2%.

The Dow Jones Industrial Average rose 236.82 points, or 0.68%, to 34,814.39; the S&P 500 index rose 37.65 points, or 0.85%, to 4,480.7; the Nasdaq Composite Index rose 123.77 points, or 0.82%, to close at 15,161.53.

Among the 11 major sectors of the Standard & Poor’s 500 Index, all sectors except utilities rose. Energy stocks have risen the most so far, benefiting from the rise in crude oil prices driven by the decline in the US stock market.

The Chinese stock market listed in the United States continued its recent decline, as weak retail sales data indicates that the mainland economy may slow down, and Beijing’s regulatory reform of Macau’s gaming industry has further restrained interest in the Chinese stock market.

Prior to this, China has adopted a series of regulatory measures on major technology companies, which have lost billions of dollars in market value this year.

“It’s difficult to buy any Chinese stock,” Carlson said. “From an investor’s point of view, you don’t know what industry is next.”

He added: “I don’t think the situation will get better anytime soon, and it may spread.”

US casino operators Las Vegas Sands Corp., Wynn Resorts Ltd and MGM Resorts International fell 1.7% to 6.3%.

After the court made an unfavorable ruling on its business practices, Apple stopped its decline and rebounded in recent trading days and reacted coldly to its release of iPhone and other gadget updates on Tuesday. Its stock price rose 0.6%.

Lending platform GreenSky Inc. rose 53.2% after Goldman Sachs Group Inc. said it would acquire the company in an all-stock transaction worth US$2.24 billion.

On the New York Stock Exchange, the number of rising stocks exceeds the number of falling stocks, with a ratio of 2.15 to 1. On the Nasdaq, the ratio of 1.70 to 1 favors the risers.

The Standard & Poor’s 500 Index hit 7 52-week highs and 3 new lows; the Nasdaq Composite Index hit 55 new highs and 106 new lows.

Stephen Culp

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This News Originally From – The Epoch Times

World Nation News Desk
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