BusinessThe effect of falling commodity prices was visible, with the rise in...

The effect of falling commodity prices was visible, with the rise in Wall Street, the US markets closed in strength this week

S&P 500 rises more than 3%, showing biggest single-day rally since May 2020

Shares have seen a rally this week. The reason for this came as financial markets were furious over concerns that the Fed’s sharp rate hikes to contain the highest inflation rate in 40 years could trigger a recession.

Still, investors are speculating that even after the benchmark S&P 500’s 20% drop from its January closing high earlier this month, the market can still hold on to its lows, confirming that it is a bear market.

Shawn Cruz, Head Trading Strategist, TD Ameritrade, said, “Sellers get tired after a few similar moves.”

“This may be a small sample of a relief rally,” Cruz said. “But I don’t think I would encourage anyone to invest with both hands at this point in time, as we have seen this over and over again where these situations reverse very quickly.”

The Dow Jones Industrial Average rose 823.32 points, or 2.68 per cent, to 31,500.68. The S&P500 closed 116.01 points, or 3.06 percent, higher at 3,911.74. The Nasdaq Composite rose 375.43 points, or 3.34 per cent, to 11,607.62.

For the week, the S&P 500 gained 6.4 percent, the Dow 5.4 percent, the Nasdaq 7.5 percent.

A survey on Friday showed US consumer sentiment hit a record low in June. But there was a slight improvement in the inflation outlook. Thursday’s data pointed to US trade activity slowing in June.

Measures continued to ease inflation fears last week. Along with this, there was a sharp fall in commodity prices this week. The Refinitiv/CoreCommodity Index, which measures prices for energy, agriculture, metals and other commodities, fell to near two-month lows on Thursday after hitting a multi-year high in June. Due to all these reasons, the market saw a rally this week.

The Fed’s annual”stress test” reports that banks have enough capital to withstand a severe economic downturn. It was followed by the S&P 500 Banks Index, up 3.7 percent. Along with this, there was a rise in bank shares.

Shares of FedEx Corp jumped 7.2 percent after the parcel delivery company issued a stronger-than-expected full-year profit forecast.


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1 share touched new 52-week high in S&P 500. While 29 stocks hit new lows. On the other hand, 34 stocks hit new highs in the Nasdaq Composite and 86 stocks hit new lows.

1 share touched new 52-week high in S&P 500. While 29 stocks hit new lows. On the other hand, 34 stocks hit new highs in the Nasdaq Composite and 86 stocks hit new lows.

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