Wall Street stocks rebound after inflation panic

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Wall Street’s stock market entered a recovery mode on Thursday, after three consecutive trading days because of fears that the central bank will withdraw its support during the crisis period after the inflation surge.

In the midday afternoon in New York, the Standard & Poor’s 500 Index rose 1%. Down 2.1% On Wednesday, it set its worst single-day performance since February. The Nasdaq Composite Index (Nasdaq Composite) rose 0.6% and was close to the correction zone on Wednesday, when its closing price was nearly 8% below its April record high.

The U.S. government debt rebounded, and the benchmark 10-year U.S. Treasury bond yield fell 0.03 percentage points to 1.67%.

The Standard & Poor’s 500 Index hit a record high on Friday, because people’s optimism about the global recovery has been promoted, and central banks in various countries are maintaining loose monetary policies. The blue-chip benchmark index subsequently fell 4% in three trading days due to growing concerns about inflation.

Data released on Wednesday showed that the U.S. Inflation rose 4.2% Prices rose year-on-year in April, an increase that exceeded economists’ expectations. Speculation about the Fed’s reduction of its monthly purchases of $120 billion in bonds has increased, which helps reduce borrowing costs and supports stock valuations.

However, Fed Vice Chairman Richard Clarida (Richard Clarida) said this week that last year’s “temporary” factors related to industry closures pushed prices to exceed the central bank’s 2% target, but the economy is still “away from us”. There is still a long way to go for the goal.”

Analysts warned that market turmoil will continue as investors shift from believing the Fed to taking action against policymakers to fight inflation, and then quickly tightening concerns about financial conditions.

Sonja Laud, Chief Investment Officer of Legal & General Investment Management, said: “We are at a turning point where market volatility may persist.” “Any possibility of changing the story of continuously lowering interest rates will be disturbing.”

The Vix index is the expected volatility indicator of the Standard & Poor’s 500 Index (S&P 500), known as the “fear index” of Wall Street, and is currently at its highest level since the beginning of March.

Nicholas Colas of DataTrek, a research firm, said: “The market is turbulent because they are not sure what kind of inflation we currently have or what measures the Fed might take to reduce inflation.”

UBS Wealth Management Chief Investment Officer Mark Haefele (Mark Haefele) said that market turmoil also provides opportunities for traders.

He said: “In light of our view, the increase in the inflation rate will prove to be temporary, and the stock market’s upward momentum will continue. Investors can use the increased volatility to build long-term risk exposure,”

In Europe, the Stoxx 600 index closed down 0.1% and fell 1.7% earlier in the session.

The international oil price benchmark Brent crude fell 3.8% to $66.68 per barrel due to the colonial pipeline of the United States. Resume operations After being shut down last Friday due to a cyber attack.

The U.S. dollar index, which measures the exchange rate of the U.S. dollar against major currencies, rose 0.1%.

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