Stock Market: It’s up to Wall Street, and you’re betting on a short recession

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market reviews. The New York Stock Exchange ended higher on Thursday after a volatile session regarding a new congressional hearing of the Federal Reserve Chairman who once again demonstrated his determination to fight inflation.

The Toronto Stock Exchange fell nearly 300 points Thursday, with the energy and mining sectors suffering the biggest losses as investors continue to worry about the possibility of an imminent recession.

To re-consult market news

Stock market indices at close

in Toronto, a S&P / TSX It fell 286.92 points (-1.51%) to 18,717.12 points.

in New York, a S & P500 It advanced 35.84 points (+0.95%) to 3,795.73 points.

The Nasdaq It rose 179.11 points (+1.62%) to 11,232.19 points.

The daw up 194.23 points (+0.64%) at 30677.36 points.

The color It decreased from $0.0028 (-0.3594%) to $0.7696.

The oil It fell 2.05 USD (-1.93%) to 104.14 USD.

He went It closed down $12.20 (-0.66%) at $1,826.20.

The Bitcoin It ended up with $1,025.79 (+5.16%) at $20,895.55.

Context

Edward Moya of Oanda noted that “stagnation is always the central point of discussions on Wall Street.”

But for LBBW expert Karl Helling, the change in investor expectations for rate hikes appears to show that fear of a recession may be short-lived.

“It was a very interesting day. A week ago, the market was pricing the (Fed) overnight interest rates above 4% and I saw them peaking in the third quarter of 2023. Now he sees it going up to 3.5% with a peak in the first quarter of 2023. 2023, the analyst noted.

So investors have seen a faster rise in rates over time, which offsets a shorter economic slowdown.

The 10-year Treasury yield, which moves in the opposite direction to the prices of these bonds, fell significantly to 3.08% from 3.15% the day before.

The two-year contracts also came close to the ten-year contract, at 3.00%, “flattening the curve” generally interpreted as a sign of short-term stagnation.

“At the same time, we are witnessing a global price rebalancing, such as raw material prices that have fallen in fifteen months or energy prices that have fallen in one month,” emphasized Karl Helling.

“We find ourselves having to make big decisions about the stock market,” he said, explaining the changing mood of the cycle.

“Should we sell because we’re entering a recession or do we buy because the magnitude of the price increases will be lower and faster than we thought?”

Edward Moya, before a House committee, on the second day of the annual hearing in the US Congress, noted that Federal Reserve Chairman Jerome Powell “has maintained his tough anti-inflation stance.” The head of the Central Bank reiterated that the fight against inflation, which reached its highest level in 40 years, is still “unconditional”.

For LBL Financial’s Quincy Crosby, the market was torn between risk appetite and risk aversion “until, like the Federal Reserve, it saw solid evidence that inflation had stabilized.”

Seven of S&P’s eleven sectors finished in the green, starting with health services (+2.22%) and real estate (+2.01%), but energy (-3.74%) and materials (-1.40%) leading the decline.

express conveyor FedEx (FDX) It jumped 2.91% to $234 in electronic trading after the close as the group forecast higher profits for fiscal year 2023.

While the energy sector witnessed a bad session in the wake of the decline in crude oil prices Occidental Petroleum (OXY) The company kept its head above water (+0.57% to $56.09).

Warren Buffet’s Berkshire Hathaway fund increased its stake further by purchasing about 9.5 million additional shares this week, according to documents filed with the Securities and Exchange Commission.

American Tobacco Company Altria (MO)Which owns 35% of Juul Labs, which banned the US Food and Drug Administration from selling e-cigarettes on Thursday, rebounded 2.43%. The headline had fallen the previous day by more than 9% pending a decision by US health authorities.



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