February 28, 2024
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Wall Street boosts confidence in US economy – international

The New York Stock Exchange closed higher on Thursday (17), maintaining its momentum on Wednesday despite the Federal Reserve raising interest rates on a market that is optimistic about the health of the US economy.

Thus the Dow Jones rose 1.23% to close at 34,480.76 points; Technology Nasdaq was up 1.33% at 13,614.78 units, and S&P; The 500 rose 1.23% to 4,411.67 points.

Dow Jones regained its position a month ago, S&P; 500, before the Russian invasion of Ukraine.

It initially acted in red due to the benefits and concerns over the US and Russian reports on Ukraine, before the codes gradually recovered during the day and ended clearly in blue.

“It was a little more aggressive than the Fed expected, but not enough to diversify markets,” Rose Mayfield, a Baird analyst, explained.

With a quarter-percent increase in its base interest rate to 0.25% -0.50% per annum from 2018, most members of the body expect a total of seven rate hikes in 2022, which surprised economists. .

Meanwhile, according to Scotiabank’s Juan Manuel Herrera, Federal Reserve Chairman Jerome Powell’s encouraging statements about the US economy “fell well for markets, especially stock markets.

“The U.S. economy is very stable,” Rose Mayfield added.

Lloyd Blankfein, who ran Goldman Sachs and its senior chairman from 2006 to 2018, stressed in a statement that “even after this series of hikes, real interest rates will remain negative.”

The expected base rate of 1.75% to 2% at the end of 222 will be much lower than the current level of inflation, which is close to 8% per annum.

Roblox, an online gaming platform, lost three-quarters of its market capitalization since its peak in late November, rising 11.66% to $ 46.35.

WeWork (+ 12.86%), Peloton (+ 5.96%) and Netflix (+ 3.88%) are up again.

Oil companies also benefited from rising oil prices. Occidental Petroleum (+ 9.47%) and Marathon Oil (+ 6.86%) topped the list, followed by Konocophilips (+ 4.23%).