By DAMIAN J. TROISE and ALEX VEIGA-AP Business Writer
New York (AP) — Equities shook off the noon slump and closed at highs, with key indices moving well towards a weekly rise. Transactions were volatile all day as investors continued to focus on another pre-parliamentary testimony by Federal Reserve Chairman Jerome Powell. The S & P 500 rose 1%, the Dow Jones Industrial Average rose 0.6%, and the Nasdaq rose 1.6%. Powell reaffirmed the central bank’s goal of “holding and truly fixing inflation expectations” as the Fed seeks to curb inflation. Yields on 10-year government bonds, which help set mortgage rates, have fallen to 3.09%.
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New York (AP) — Equities gave up early rises and turned mixed in Thursday afternoon trading on Wall Street as investors continued to focus on rising inflation and interest rates.
The S & P 500 rose 0.1% at 2:23 pm in the east. It rose 1% before. The Dow Jones Industrial Average fell 78 points (0.2%) to 30,410 and the Nasdaq rose 0.6%.
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The major indexes are on track for weekly growth. Trading has been turbulent in recent weeks and the Benchmark S & P 500 has fallen 10 of the last 11 weeks. Stocks shook between sharp rises and falls as investors tried to determine if a recession was imminent.
The Federal Reserve is trying to mitigate the effects of inflation At higher interest ratesHowever, Wall Street is worried that economic growth will slow down too much and may actually go too far. Bring recession..
Investors watched Thursday’s second day of Federal Reserve Chairman Jerome Powell’s testimony to Congress. The day after he testified to the Senate Committee, he testified to the House Committee.
Powell reiterated that the Fed wants to curb inflation without a recession, but admitted that “the road is getting harder and harder.”
He also acknowledged that the Fed’s tools to combat inflation are sluggish and at risk of damaging the economy.
Powell previously admitted that: Recession is “certainly possible” And central banks are facing more difficult challenges in it War in Ukraine Essentially pushing oil and other commodity prices even higher, Spread inflation even further..
“I don’t think the recession is inevitable,” Powell emphasized on Thursday.
Encouraging for the Federal Reserve, many households and businesses still seem to expect inflation to eventually fall. If it changes, it can create a self-fulfilling virtuous cycle that only exacerbates inflation.
“Our overall framework is to firmly maintain and truly fix inflation expectations,” he said Thursday. Powell emphasized the importance of lowering inflation to the Fed’s target of 2%. “You can’t fail this,” he said.
Powell spoke to Congress a week after the Fed Raised the benchmark interest rate At three-quarters of the percentage point, Biggest hike In almost 30 years. Fed policymakers are also forecasting a faster pace of rate hikes this year and three months ago, with key interest rates reaching 3.8% by the end of 2023. This will be the highest level in 15 years.
Earlier Thursday, the Ministry of Labor said few Americans applied. Benefits of being unemployed Last week it was slightly more than economists expected. A strong job market is a relatively bright spot in an otherwise weakening economy, and consumer sentiment and retail sales show increased damage from inflation.
However, according to a survey by IHS Markit, companies are showing slower-than-expected growth. Weak economic data is discouraging the broader economy, but it could also mean that the economy is slowing enough to ease the planned rate hikes by the Fed.
Inflation remains high, putting high prices on consumers in everything from food to clothing. It has pressured people to shift spending from high-end products like electronics to necessities. Pressure is exacerbated as gasoline prices hit record highs and supply and demand are disrupted, with no signs of a decline in gasoline prices.
Leading tech and healthcare companies have done a lot of tedious work. Microsoft was up 1.7% and Johnson & Johnson was up 1.9%. Energy stocks have fallen as oil prices have fallen. Valero fell 8.8%.
Bond yields have fallen sharply.Yields on 10-year government bonds to help set Mortgage ratesDropped from 3.15% in the second half of Wednesday to 3.06%.
Contributed by AP Business Writer Stan Choe. Veiga reported from Los Angeles.
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Wall Street shakes off noon stumbling blocks and ends higher | National News
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