Stocks rise as Wall Street strives to recover from this year’s plunge

Shares rose on Thursday as Wall Street continued to consider the risks of a recession, but the market tried to recoup some of the sharp losses it suffered in 2022.

The Dow Jones Industrial Average rose 130 points (0.4%). The S & P 500 rose 0.5% and the Nasdaq Composite index rose 0.9%.

In Thursday’s session, the key average recorded a significant rise this week. During that time, the S & P 500 and the Dow rose by more than 2%, while the Nasdaq rose by about 3%.

Indeed, Wednesday’s stock price fell slightly as investors considered the possibility of a recession.

Todd Jones, Chief Investment Officer of Gratus Capital, said:

“For us, to see this as a more sustainable move, we certainly have to look at some economic data, but more specifically, an improvement in inflation.”

Federal Reserve Chair Jerome Powell will talk with Congressmen on Thursday about monetary policy for the second day.On Wednesday, Powell was sent by the Central Bank “Strong commitment” to lower inflation.. He also said the recession was a “potential” and a fear of continuing to weigh on Wall Street.

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UBS is the latest investment bank to raise the probability of a recession to 69% this week, citing weak housing, industrial production and capital goods data last week.

“We are now watching for further negative follow-throughs, or simply reaching a local peak and resuming the momentum of hard data growth,” UBS said in a Thursday note.

Citigroup Increased recession odds to 50%Quotes a consumer demand slide that could make it more difficult for the Federal Reserve to achieve a soft landing.

Goldman Sachs has the potential for recession “Higher and more front-loaded” Than before. In a memo on Monday, the company raised its bet on the US recession from 15% next year to 30%. Over the next two years, these odds have increased from 35% to 48%.

On Thursday, the Ministry of Labor said US Weekly Unemployed Billing The labor market remains tight, but has fallen from 2,000 to seasonally adjusted 229,000 for the week ending June 18.

Stocks rise as Wall Street strives to recover from this year’s plunge

Source link Stocks rise as Wall Street strives to recover from this year’s plunge

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