December 6, 2022

The Nasdaq and S&P 500 closed sharply higher, buoyed by optimism about inflation

The Nasdaq and S&P 500 closed sharply higher, buoyed by optimism about inflation

  • Stock growth drives value, Nasdaq rises
  • Nasdaq and S&P 500 gain for a second day
  • End of the indices: S&P 500 + 0.93%, Nasdaq + 1.88%, Dow + 0.10%

Nov 11 (Reuters) – The S&P 500 and Nasdaq ended sharply higher on Friday, extending a rally that began the day before after a weak inflation reading raised hopes that the Federal Reserve will become less aggressive as it raises rates. American interest.

Amazon (AMZN.O) It jumped 4.3% with Apple (AAPL.O) and Microsoft (MSFT.O) Both are up more than 1% and contribute to Nasdaq’s gains.

On Thursday, the S&P 500 and Nasdaq indexes posted their biggest daily percentage gains in more than two and a half years, as annual inflation fell below 8% for the first time in eight months.

The decline in healthcare stocks limited the gains of the Dow Jones Industrial Average with United Health Group (OH.N) Today it is down 4.1%.

“What we’re really seeing today is just a follow-up to yesterday. There’s a lot of liquidity out there on the sidelines that’s running,” said Tim Greskey, chief portfolio strategist at Ingalls & Snyder in New York.

“It probably refers to some kind of bottom being thrown into the market, kind of a line drawn in the sand. But even if we do make a bottom, we are a long way from making new highs,” Gresky said.

Investors see an 81% chance of a 50 basis point rate hike in December and a 19% chance of a 75 basis point increase, according to CME Fedwatch.

Adding to the tension on Wall Street, cryptocurrency exchange FTX said it would initiate bankruptcy proceedings in the US and CEO Sam Bankman-Fred resigned due to a liquidity crunch that prompted the intervention of regulators around the world.

The S&P 500 jumped 0.93% to end the session at 3,993.05 points.

The Nasdaq rose 1.88% to 11,323.33 points, while the Dow Jones Industrial Average rose 0.10% to 33,749.18 points.

Volume on US exchanges was relatively heavy, with 13.5 billion shares traded, compared to an average of 12.0 billion shares over the previous 20 sessions.

Among the 11 S&P 500 sector indices, six rose, led by the energy sector (.SPNY)an increase of 3.07%, followed by a 2.48% rise in telecom services (.SPLRCL).

S&P 500 Growth Index (.IGX)Which includes interest rate-sensitive technology stocks, rose 1.6%, outpacing the value index (.IVX) 0.3% profit.

Over the course of the week, the S&P 500 rose 5.9%, the Dow Jones rose 4.15% and the Nasdaq jumped 8.1%. It was the S&P 500’s biggest weekly gain since June and the Nasdaq’s biggest weekly gain since March.

Concerns about the economic downturn have hit Wall Street this year. The S&P 500 has been down about 16% year-to-date, and is on track for its biggest annual decline since 2008.

Shares of US-listed Chinese companies rallied, with Alibaba Group Holdings Ltd gaining 1.4% after China eased some of its strict rules on the coronavirus.

The number of advanced versions outnumbered the number of falling cases in the S&P 500 (.AD.SPX) A ratio of 1.7 to one.

The S&P 500 made 22 new highs and there were no new lows; The Nasdaq recorded 102 new highs and 110 new lows.

Additional reporting; Editing by Shunak Dasgupta, Aaron Koyor and David Gregorio

Our criteria: Thomson Reuters Trust Principles.