Wall Street closed with strong gains after the worst week since the start of the pandemic

File photo of a street sign on Wall Street outside the New York Stock Exchange in New York (Reuters/Carlo Allegri)

Wall Street shares rose on TuesdayStarting a shorter week of vacation on a positive note, As investors debated whether the rally could lead to a market recovery.

After heavy losses last week, the index daw Jones It rose 2.2 percent to 30,531.77 points.

Indicator Standard & Poor’s 500broadly, the index rose 2.5% to close at 3764.84, while the index rose Nasdaq compoundTechnology Rich also gained 2.5% to 11069.30.

Stocks took a beating last week, posting their worst performance since the start of the pandemic, after The Federal Reserve will raise interest rates And the promise of more in the battle to quell scorching inflation.

Other major central banks have joined the frayexcept for the Bank of Japan, where concerns are growing that higher interest rates could trigger a global recession.

Federal Reserve Chairman Jerome Powell (Reuters/Elizabeth Frantz)
Federal Reserve Chairman Jerome Powell (Reuters/Elizabeth Frantz)

“We are seeing another classic bear market rally… which is completely normal after such a big drop.”he said to France Press agency Adam Sarhan of 50 Park Investments.

“The question now is this is another bear market rally, which means It will last for a short time and then reverse and reach new lowsor if it is the bottom, it means that a more sustainable rise will follow.”

“At this point, we don’t know.”It depends on many factors, including inflation data and the Federal Reserve, he said.

The White House is fighting on all fronts to help American families struggling to make ends meet. in the middle for Increase in gasoline and housing priceshighlighting positive economic news, including Strong recovery and strong job market.

US Treasury Secretary, Janet Yellenover and over again Try to allay recession fears He said Sunday that a recession is not “inevitable” even as the economy slows because it is “transitioning to stable growth”.

file image.  US Treasury Secretary Janet Yellen (Reuters / Jonathan Ernst)
file image. US Treasury Secretary Janet Yellen (Reuters / Jonathan Ernst)

But investors are also looking at the data that emerges Consumers restrict spending on vacations and dining outdiminished confidence at work.

All eyes will be on the Fed Chairman. Jerome Powellwho will testify for two days before Congress, starting on Wednesday, where he will face Questions about the central bank’s handling of the economy and the risk of recession.

Among individual stocks, Kellogg’s stock rose 2.6 percent after it was announced that the breakfast cereal giant would split into three separate companies.

(With information from AFP)

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