The New York Stock Exchange ended slightly on Thursday after two losses accustomed to the Central Bank (FRB) program and decided to tighten monetary policy by raising interest rates and offloading assets.
According to the final closing price, the Dow Jones Index rose 0.25% to 34,583.57 points. The tech-heavy Nasdaq rose 0.06% to 13,397.30 points and the S & P 500 rose 0.43% to 4,500.21 points.
“The market has recovered steadily from the morning losses. Investors are now pleased with the idea that the Fed has given a very clear outlook on how to act on rate hikes and balance sheet cuts this year. It seems, “Commented Peter Cardillo of Spartan Capital.
In the minutes of the last meeting released Wednesday, members of the Fed’s Financial Commission (FOMC) could justify one or more rate hikes of 0.5 percent points to combat rising inflation. Showed that there is.
They also plan to begin shrinking their FRB balance sheets as early as May, reaching $ 95 billion per month within three months. This includes $ 60 billion in Treasury securities and $ 35 billion in mortgage-backed securities.
Bond yields continue to grow, with 10-year Treasury yields rising to 2.64%, the highest in about three years.
Good macroeconomic news supported the index later in the session. Meanwhile, weekly unemployment allowance applications fell to the lowest level since 1968, with 166,000 applications last week. This is the second lowest level since the history of these statistics.
Meanwhile, consumer credit surged in February (+ 11.3% year-on-year), “indicating that consumers are rushing to lend before the money is too high,” Peter Cardillo suggested.
“There will be some relief from the Fed-led decline, and investors will begin to see the quarterly closing season starting next week at banks,” said Spartan Capital analysts.
In terms of rating, HP rose 14.78% to $ 40.07 after the announcement of Berkshire Hathaway shares. Warren Buffett’s holding company has acquired 11.4% of the capital of computer and printer manufacturers.
A billionaire investment fund has invested $ 4.2 billion worth of shares in HP in several transactions this week, according to a document filed with the US financial market regulator SEC.
Tesla launched on Thursday night with a big fanfare at the Mega Party, the group’s fifth mega factory in Austin, Texas. The title rose 1.10% to $ 1,057.26 after falling more than 4% the day before following a tech plunge.
Twitter, where Tesla boss Elon Musk surprisingly acquired more than 9% stake, fell 5.38% to $ 48.04 after a sharp rise the day before.
Following negative feedback from Deutsche Bank, pharmacy and drugstore chain Rite Aid fell 17.18% to $ 6.99.
CDK Global, a provider of technology services and software to car dealerships, has agreed to acquire Brookfield Business Partners in a $ 8.3 billion deal.
CDK shares surged 11.25% to $ 54.50.
Levi Strauss fell 0.72% to 19.27%, despite better-than-expected results. This was clouded by the prospect of persistent problems in the supply chain.