As Wall Street marks powerful gains, is it heading for recovery?

2022-06-27 14:31:52 GMT (Economies.com)
As Wall Street marks powerful gains, is it heading for recovery?

US stocks rallied on Friday and rose for the second session in a row, marking two-week highs, as risk appetite improved in the market, so it this the start of true recovery for these stocks? 

 

We explore the causes behind the spike of gains on Friday to gauge the future in a better way. 

 

Wall Street 

 

US stock indices rose 3% on average last Friday, the second profit in a row, and the largest since May 4, marking two-week highs. 

 

Dow Jones and S&P 500 hit 19-month lows on June 17 before rebounding strongly as Fed officials send positive remarks on the economy. 

 

Inflation Forecasts

 

Consumers expected inflation to decline to 5.3% in June, calming concerns about runaway inflation in the US this year. 

 

Oil prices continue to decline as well , paving the way for a decrease in US gas prices. 

 

James Bullard 

 

Federal Reserve Saint Louis Governor James Bullard almost ruled out chances of a recession to the US economy. 

 

Bullard believes the rate hikes will be painful but won't lead to actual recession, the Fed will make sure of that. 

 

Purchase Opportunities 

 

Now many investors see US stocks as undervalued, which drove huge demand on them last Friday. 

 

However, US stock continue to face a lot of pressures, such as continuous inflationary pressures, weak sentiment, low liquidity. 

 
 
 
  Symbol Last Change Chg.%
1.0167
-0.0052
0.5069%
1.2097
-0.0008
0.0620%
20.106
-0.144
0.714%
86.838
-0.423
0.485%
92.34
-2.76
2.90%
1774.555
-7.130
0.400%
 
 
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Asia