Nasdaq: S&P, Nasdaq high as July hot streak continues

Wall Street benchmarks on Thursday the S&P 500 and . ended with Nasdaq Recording its fourth consecutive high close as traders rallied in US equities after federal Reserve Indicates a more restrained schedule of interest rate hikes.

US stock markets in July have stabilized after a brutal selloff in the first half against a backdrop of rising inflation, the Ukraine conflict and a global recession. irrigatedPivot away from the easy money policy.

The S&P 500 index has closed higher in each of the first four sessions so far this month, recording its biggest decline in its first half since 1970. The benchmark has not posted five consecutive gains so far in 2022.

Minutes of the central bank’s June policy meeting, where the Fed raised interest rates by three-quarters of a percent, showed a firm reaffirmation of its intention on Wednesday to bring prices under control.

However, Fed officials acknowledged the risk of a rate hike having a “more than anticipated” impact on economic growth and decided an increase of 50 or 75 basis points would be appropriate at a policy meeting in July.

A less acrimonious tone echoed in comments from Fed Governor Christopher Waller on Thursday. Exaggerating fears of a US recession, he advocated a 50 basis-point increase in September.

Such sentiment was taken as a signal by some to add to the situation, including high-growth stocks, which were hit in the first half of 2022 as investors looked at their prospects in a rising interest rate environment. was paid attention to.

Tech names big and small benefited from this, heavyweight Tesla Inc. 5.5% and Google Parent Alphabet Inc. is growing 3.7%, and Affirm Holdings Inc. and Avalara Inc. is growing at 17.1% and 16.4%, respectively.

“It looks like the real money is starting to come back,” said Louis Ricci, Head Trader amals advisors,

“There is no reason why the market can’t go down another 30%, but we think the risk is 30% downside but three to four times upward.”

While investors widely expect the Fed to hike rates by 75 basis points in July, expectations of a peak terminal rate next year have come down significantly amid rising concerns of a global economic slowdown.

Fed funds futures traders are pricing in the benchmark rate to peak at 3.44% in March. Before the June meeting, it was expected that this would increase to around 4% by May. It is currently at 1.58%. ,

Elsewhere, a report on Thursday showed the number of Americans filing new claims for unemployment benefits rose unexpectedly last week and labor demand is slowing, with layoffs hitting a 16-month high in June. .

A closely watched employment report on Friday projected an increase of 268,000 jobs in non-farm payrolls last month after an increase of 390,000 in May.

The Dow Jones Industrial Average rose 346.87 points, or 1.12%, to 31,384.55, the S&P 500 rose 57.54 points, or 1.50%, to 3,902.62 and the Nasdaq Composite rose 259.49 points, or 2.28%, to 11,621.35.

Nearly all S&P sub-sectors were higher, with the energy index gaining 3.5% making it the best performer as oil and gas companies followed a rebound in crude oil prices from the previous day’s 12-week low .

The Philadelphia SE Semiconductor index climbed 4.5% after South Korea’s Samsung Electronics turned its best second-quarter profit since 2018 driven by strong sales of memory chips.

Volume on US exchanges stood at 10.47 billion shares, compared to an average of 13.08 billion for the entire session over the past 20 trading days.

The S&P 500 posted 2 new 52-week highs and 29 new lows; The Nasdaq Composite posted 24 new highs and 57 new lows.

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