Wall Street stocks begin week on positive note

Wall Street stocks begin week on positive note

Wall Street stocks begin week on positive note
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  • Dow Jones Industrial Average is up 1.7% after 30 minutes of the holiday-shortened week.
  • &P 500, which entered a bear market earlier last week, jumped 2.4 percent to 3,762.17.
  • Nasdaq Composite Index gained 2.9 percent to 11,108.56.
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Wall Street stocks began positive, as investors shrugged off recession and pandemic fears in order to benefit from low prices following last week’s plunge.

Stocks plummeted this week, posting their worst performance since the outbreak began after the Federal Reserve raised interest rates and pledged more in the fight to cool hot inflation.

As fears rise that rising interest rates could precipitate a worldwide recession, other major central banks have joined the fight.

Read More: Wall Street stocks bounce ahead of Fed decision

Dow Jones Industrial Average is up 1.7% after 30 minutes of the holiday-shortened week.

The broad-based S&P 500, which entered a bear market earlier last week, jumped 2.4 percent to 3,762.17, while the tech-rich Nasdaq Composite Index gained 2.9 percent to 11,108.56.

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“We’re seeing another classic bear market rally… It’s perfectly normal after such a big decline,” Adam Sarhan of 50 Park Investments told AFP.

Read More:Wall Street stocks close lower in another down week

 

“Now, the question becomes is this another bear market rally, which means it’ll last for a little bit of time and then roll over and hit new lows, or is it the bottom, meaning a more sustained rally is going to follow.”

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“And at this stage, we just don’t know,” he said, noting it depends on many factors including inflation data and the Fed.

The White House is pushing on all fronts to aid American households struggling with rising gas and home expenses while highlighting the strong recovery and stable employment market.

Janet Yellen said a recession is not “inevitable” even if the economy will slow “transitions to stable growth.”

Read More: Wall Street Stocks will suffer more when inflation are dashed

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But investors also are looking at data showing consumers reining in spending on vacations and eating out, and dwindling business confidence.

Fed Chair Jerome Powell will appear before Congress for two days starting Wednesday, answering questions about the central bank’s handling of the economy and the recession threat.

Individual stocks rose 2.6 percent after Kellogg’s announced the division of the breakfast cereal giant into three distinct firms.

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