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Stock prices will rise as Wall Street’s victory week begins.National news

By STANCHOE and ALEX VEIGA-AP Business Writer

Wall Street shares rose on Thursday based on the winning week. Profit came in a flood of news about the economy, interest rates and corporate profits. The S & P 500 rose 1% after shaking off the initial stumbling block and returned to its highest level in 6 weeks. The Dow rose 0.5% and the Nasdaq rose 1.4%. Much of the focus is on Europe, where many years of experimentation with negative interest rates have ended. In the United States, the report suggested that the economy was slowing more than expected, but a better-than-expected profit report from Tesla found a mixed set of earnings.

This is the latest news update. The previous story of AP is as follows.

As Wall Street sifts through a flood of news about the economy, interest rates and corporate earnings, stock prices have risen on Thursday and are rising towards the week of victory.

The S & P 500 rose 0.6% in the afternoon trading after shaking off early stumbling blocks and returned to its highest level in six weeks. The Dow Jones Industrial Average fluctuated between small gains and losses. The Nasdaq Composite rose 1.1% as Tesla and tech stocks led the market, rising 50 points (0.2%) at 31,925 at 3:35 EST.

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Much of Wall Street’s focus is on Europe, where many years of experimentation with negative interest rates have ended. In the United States, the report suggested that the economy was slowing more than expected, but a better-than-expected profit report from Tesla found a mixed set from the country’s largest firm.Stocks temporarily ousted after President Joe Biden positive on test In the case of COVID, there are only a few.

At the heart of this year’s financial market sellouts was the world’s punishing high inflation and the central bank’s move to crush it.On Thursday, the European Central Bank surprised the market when it happened Interest rate hike More than expected, the increase for the first time in 11 years.

Similar to the Federal Reserve Board, which is scheduled to raise rates for the fourth time next week, it is expected that rate hikes will slow the economy enough to overcome high inflation. The risk is that higher interest rates push down investment prices, and too aggressive hikes can cause a recession.

In the United States, some areas of the economy have already begun to soften.

Maximum number of workers who applied Unemployment allowance Last week it was eight months, but it remains low compared to history. Another report, released Thursday morning, showed that manufacturing in the Mid-Atlantic region was significantly weaker than economists expected.

Discouraged data can help lower Treasury yields and direct the Fed to lower interest rates. It may help in turn to support the stock.

The two-year Treasury yield, which tends to move in line with Federal Reserve expectations, fell from 3.25% at the end of Wednesday to 3.09%. Predictions among traders about what the Federal Reserve will do at next week’s meeting are leaning towards an increase of 0.75 percentage points, away from a huge increase in full percentage points.

Affecting 10-year yield Mortgage ratesDropped from 3.03% to 2.91%.

The main reason for the rise in Wall Street stock prices this week was strong profit reports from major US companies. If they can bring about continued growth despite high inflation, it will support one of the two main means of setting stock prices. The other depends on the destination of interest rates.

Tesla The first deal rose 9.9% after electric car makers reported better spring results than analysts expected. This was the greatest single force that lifted the S & P 500.

Steelmaker Nucor surged 7.6% after better-than-expected results. Tobacco company Philip Morris International rose 4% after reporting higher-than-expected profits.

On the losing side was an airline that received some disappointing reports.

United Airlines Profit and earnings fell 10.5% after lower than expected. We also reduced our growth plan later this year. American Airlines Sales were higher than expected, but fell 8.1% after reporting lower-than-expected revenue.

AT & T fell 8%, despite reporting better profits and earnings than Wall Street expected. Lowered the forecast for cash income this year.

As US crude oil prices fell 3.5%, the stock prices of energy companies also fell.

European equities were mixed and several events continued to draw market attention across the continent beyond the significant moves of the European Central Bank.

An important pipeline that brings natural gas to the region Resume on thursdayBut Anxiety continues Russia may limit supply to punish Ukraine’s allies.Premier Mario in Italy Draghi resigned After the collapse of his ruling coalition.Europe War in UkraineHigh inflation and potential trouble in the European bond market.

In Asia, as widely expected, the Nikkei 225 in Tokyo rose 0.4% after the Bank of Japan did not announce major policy changes after the two-day meeting. Raising interest rates was a holdout of the global rush.

Contributed by Yuri Kageyama, an AP business writer.

Copyright 2022 AP communication. all rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.

Stock prices will rise as Wall Street’s victory week begins.National news

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