Stock markets close in green despite fears of economic decline

wall street closed this Wednesday in green and the Dow Jones Industrials, its main indicator, gained 1.40%, thus changing course after weeks of decline, despite fears of a slowdown in economic growth.

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At the close of trading on the New York Stock Exchange, the Dow Jones added 435.98 points, to 31,581.28 integers, while the selective S&P 500 rose 1.83% or 71.68 units, to 3,979.87 points. The Nasdaq composite market index, in which the main technology companies are listed, gained a powerful 2.14% or 246.99 integers, up to 11,791.90 integers.

Stocks had been down for three weeks due to to concerns about the world economy. In China, the lockdowns due to a new wave of covid-19 are worrying, since they are affecting international supply chains. In Europe, eyes are on the energy crisis.

While in the United States, investors fear that a economy too strong encourage the Federal Reserve (Fed) to keep raising interest rates to curb inflation.

“Over the past few weeks, the market interpreted positive economic news as bad news, because it meant further tightening by the Fed.”, said Art Hogan, chief market strategist at B. Riley FBR in statements collected by The Wall Street Journal.

“That counterintuitive reaction can only last so long and today investors are realizing that they overreacted,” he added. The only sector that closed in red was energy (-1.16%), while public services (3.14%) and non-essential goods (3.08%) were the sectors with the highest increases.

Among the thirty stocks of the Dow Jones, only Chevron (-1.28%) and Verizon (-0.05%) closed with losses, while the biggest gains were for 3M (3.39%) and Nike (3.17%). In other markets, Texas oil closed this Wednesday at $81.94 a barrel, and at the close of Wall Street the yield on the ten-year US Treasury bond rose to 3.271%, gold rose to $1,729.10 an ounce and the dollar falls against the euro, with an exchange rate of 1.0005.

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European stock markets rose slightly on Wednesday, taking advantage of a slight calm on interest rates at the end of the session, with the exception of London, clouded by the drop in oil prices.

After spending the day in the red, Frankfurt finally gained 0.35%, Madrid 0.17%, Milan 0.04% and Paris 0.02% but London lost 0.86%. At the close in Europe, oil prices lost more than 3.5% and returned to pre-war levels in Ukraine.

AFP and EFE