US stocks rebounded on Friday morning later falling the day before for fears that economic activity would be reduced by rising interest rates to cool inflation.
After turning the queue on Thursday, benchmarks rose in the early hours of the morning. As of 9:47 a.m. EST on Friday, the Dow was up 94 points, or 0.3%, from 30,021. The S&P 500 was up 22 points, or 59%, and the high-tech Nasdaq Composite gained 117 points, or 1%.
Wall Street’s S&P 500 index lost 3.3% on Thursday and other major benchmarks also plunged after the British central bank followed the The Federal Reserve raises its key rate. The central banks of Switzerland and Taiwan also raised rates.
Investors fear that measures to control inflation that have been in place for up to four decades could plunge the United States and other major economies into recession.
“Pain is inflicted almost everywhere and sharing doesn’t improve it in any way,” Tan Boon Heng of Mizuho Bank said in a report.
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On Thursday, the Dow lost 2.4% and the Nasdaq 4.1%.
With 23.6% below its January 3 record, the S&P remains bear market territories. The decrease of more than 20%. erases the profits of 2021one of the best Wall Street years of this century.
Along with rising borrowing costs, some of the $ 1 trillion in bonds bought by the Fed to inject money into the U.S. financial system during the pandemic are being let off its balance sheet. This should put upward pressure on market interest rates.
Fewer U.S. workers applied for unemployment benefits last week than a week earlier.
President Joe Biden told The Associated Press on Thursday that he saw reasons for optimism.
A recession “it’s not inevitable” said Biden.
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