FILE - Logos the New York Stock Exchange adorn trading posts, on the floor, Wednesday, March 16, 2022.
The Dow Jones Industrial Average added 168 points, or 0.5%, Thursday. The Nasdaq composite, meanwhile, led the way with a 1% rise. That’s been the norm so far this bull market, as chip maker Nvidia and a handful of other big tech stocks have been responsible for the lion’s share of Wall Street’s gains.may seem arbitrary, but it offers a useful marker for investors.
Much of this bull market’s gains have been because the economy has refused to fall into a recession despite repeated predictions for one. It’s withstood the highest interest rates since 2007, three high-profile collapses for U.S. banks, another threat by the U.S. government of an economy-shaking default on its debt and a series of other challenges.
High rates work to undercut inflation by slowing the entire economy and dragging on prices for stocks and other investments.next week, which would mark the first meeting where it hasn’t raised rates in more than a year. While it may hike rates one more time in July, the hope on Wall Street is that it won’t go beyond that. Inflation has been coming down from its peak last summer.Chief among them is that no one can be sure about when Fed will be done hiking rates.
Hopes for a pause by the Fed have helped big, high-growth stocks in particular. Investors see them benefiting the most from easier interest rates because that’s what’s happened in the past.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: aldotcom - 🏆 82. / 68 Read more »