US Stocks Post First Weekly Gain After 2-Month Loss

US Stocks Post First Weekly Gain After 2-Month Loss
US Stocks Post First Weekly Gain After 2-Month Loss

Political Editor with files from sputniknews:

Arabnews24.ca:Friday 27 May 2022 05:29 PM: https://sputniknews.com/20220527/us-stocks-post-first-weekly-gain-after-2-month-loss-1095835861.html

US Stocks Post First Weekly Gain After 2-Month Loss

US Stocks Post First Weekly Gain After 2-Month Loss

NEW YORK (Sputnik) - Wall Street posted its first weekly gain after a two-month loss, as data showing slowing inflation growth in April enthused stock market... 27.05.2022, Sputnik International

2022-05-27T21:14+0000

2022-05-27T21:14+0000

2022-05-27T21:14+0000

us stocks

business

us economy

interest rates

us

/html/head/meta[@name='og:title']/@content

/html/head/meta[@name='og:description']/@content

https://cdnn1.img.sputniknews.com/img/07e6/05/04/1095272424_0:321:3071:2048_1920x0_80_0_0_567714ac57b74db48660415d8f7574c6.jpg

The three major stock indices on Wall Street - comprising the Dow Jones Industrial Average Index, the S&P 500 and the Nasdaq Composite Index - closed Friday’s trade up 2.5% on the average.For the week, the indices averaged a return of 6.6%.The rally in stocks came as the main US inflation gauge tracked by the Federal Reserve grew at a slower pace in April for the first time in seven months, suggesting the central bank could be gaining momentum in its fight to stop the worst price outbreak in four decades.The Personal Consumption Expenditure Index, known simply as the PCE, grew 6.3% year-on-year in April, the Bureau of Economic Analysis, a unit of the US Commerce Department, said in a news release. Prior to that, the inflation tracker was unrelenting in its growth each month, expanding from an annualized pace of 3.6% in September to 6.6% in March.The surge in inflation prior to April had the Federal Reserve promising to raise rates non-stop and even slow economic growth, if necessary, to bring price growth back to the US norm of 2% or less a year. Wall Street had fallen without a stop in seven prior weeks on worries that the central bank might tip the economy into a recession with the most aggressive US interest rate hikes in a generation.Despite the turnaround, Wall Street’s three main indices remained down sharply on the year.The Dow, comprising stocks of 30 large US corporations, showed an annual loss of 9%.The S&P 500, representing the top 500 US stocks, was down 13% on the year. As of last week, the index was hovering near bear-market territory after sliding almost 20% on the year. Any asset down 20% from its most recent high or from any particular period like a quarter or year-end is defined as having entered a bear market.The Nasdaq index was down 22% on the year as of Friday's close. Last week, it showed a year-to-date loss of almost 30%.The US economy expanded by 5.7% in 2021, growing at its fastest pace in 40 years. But since this year began, the economy has been on a weaker trajectory, posting a negative growth of 1.4% in the first quarter. If it does not return to positive territory in the second quarter, the United States will be in recession going by the definition that it takes just two negative quarters in a row to make up a recession.

https://sputniknews.com/20220527/bidens-rating-at-lowest-point-while-95-of-americans-concerned-about-soaring-inflation-polls-say-1095830025.html

Sputnik International

feedback@sputniknews.com

+74956456601

MIA „Rosiya Segodnya“

https://soundcloud.com/radiosputnik

2022

Sputnik International

feedback@sputniknews.com

+74956456601

MIA „Rosiya Segodnya“

https://soundcloud.com/radiosputnik

News

en_EN

Sputnik International

feedback@sputniknews.com

+74956456601

MIA „Rosiya Segodnya“

https://soundcloud.com/radiosputnik

1920

1080

true

1920

1440

true

https://cdnn1.img.sputniknews.com/img/07e6/05/04/1095272424_340:0:3071:2048_1920x0_80_0_0_3de1d11c485108982c810cb0ccea005a.jpg

1920

1920

true

Sputnik International

feedback@sputniknews.com

+74956456601

MIA „Rosiya Segodnya“

https://soundcloud.com/radiosputnik

Sputnik International

feedback@sputniknews.com

+74956456601

MIA „Rosiya Segodnya“

https://soundcloud.com/radiosputnik

us stocks, business, us economy, interest rates, us

NEW YORK (Sputnik) - Wall Street posted its first weekly gain after a two-month loss, as data showing slowing inflation growth in April enthused stock market bulls into thinking the Federal Reserve might not have to be as aggressive with interest rate hikes as initially feared.

The three major stock indices on Wall Street - comprising the Dow Jones Industrial Average Index, the S&P 500 and the Nasdaq Composite Index - closed Friday’s trade up 2.5% on the average.

For the week, the indices averaged a return of 6.6%.

The rally in stocks came as the main US inflation gauge tracked by the Federal Reserve grew at a slower pace in April for the first time in seven months, suggesting the central bank could be gaining momentum in its fight to stop the worst price outbreak in four decades.

The Personal Consumption Expenditure Index, known simply as the PCE, grew 6.3% year-on-year in April, the Bureau of Economic Analysis, a unit of the US Commerce Department, said in a news release. Prior to that, the inflation tracker was unrelenting in its growth each month, expanding from an annualized pace of 3.6% in September to 6.6% in March.

The surge in inflation prior to April had the Federal Reserve promising to raise rates non-stop and even slow economic growth, if necessary, to bring price growth back to the US norm of 2% or less a year. Wall Street had fallen without a stop in seven prior weeks on worries that the central bank might tip the economy into a recession with the most aggressive US interest rate hikes in a generation.

“Bargain hunters are tempted back in to cap off the first winning week in eight in the US,” Craig Erlam, analyst at online trading platform OANDA, said, noting the first weekly rebound since the week that ended on March 25.

Despite the turnaround, Wall Street’s three main indices remained down sharply on the year.

The Dow, comprising stocks of 30 large US corporations, showed an annual loss of 9%.

The S&P 500, representing the top 500 US stocks, was down 13% on the year. As of last week, the index was hovering near bear-market territory after sliding almost 20% on the year. Any asset down 20% from its most recent high or from any particular period like a quarter or year-end is defined as having entered a bear market.

The Nasdaq index was down 22% on the year as of Friday's close. Last week, it showed a year-to-date loss of almost 30%.

”It's been a rough ride and despite this week's performance, there could still be more pain to come,” Erlam said, referring to potential market sell offs on worries about the economy.

The US economy expanded by 5.7% in 2021, growing at its fastest pace in 40 years. But since this year began, the economy has been on a weaker trajectory, posting a negative growth of 1.4% in the first quarter. If it does not return to positive territory in the second quarter, the United States will be in recession going by the definition that it takes just two negative quarters in a row to make up a recession.

Get the latest news delivered to your inbox

Follow us on social media networks

PREV As Prince Andrew Skips Horse Racing Event, Will He Abandon Plans to Return to Public Life?
NEXT Alien Souls or PLA Trolls? Watch New Footage From US Warships’ Mysterious 2019 UFO Encounters
 
c 1976-2021 Arab News 24 Int'l - Canada: كافة حقوق الموقع والتصميم محفوظة لـ أخبار العرب-كندا
الآراء المنشورة في هذا الموقع، لا تعبر بالضرورة علي آراء الناشرأو محرري الموقع ولكن تعبر عن رأي كاتبيها
Opinion in this site does not reflect the opinion of the Publisher/ or the Editors, but reflects the opinion of its authors.
This website is Educational and Not for Profit to inform & educate the Arab Community in Canada & USA
This Website conforms to all Canadian Laws
Copyrights infringements: The news published here are a feed from different media, if there is any concern,
please contact us: arabnews AT yahoo.com and we will remove, rectify or address the matter.