Dow Jones gains more than 100 points, market rebounds after falling yesterday

The Dow jumped more than 100 points today, with Wall Street stocks recovering. after adjusting yesterday

As of 8:48 p.m. Thai time, the Dow Jones Industrial Average was 31,416.21 points, up 163.08 points, or 0.52%.

The Dow fell more than 200 points yesterday as investors remain worried about inflation. And worried that the Federal Reserve (Fed) accelerating interest rates will push the US economy into recession.

Goldman Sachs forecasts a 35 percent chance of a recession in the next two years, while Wells Fargo forecasts a recession between the end of 2022 and the beginning of 2023.

Trading on Wall Street today was boosted by the People’s Bank of China (PBOC) cut interest rate for good customer loan (LPR) to boost the economy from the impact of the lockdown.

However, even the Dow Jones index has rebounded today. but is expected to decline this week. The Dow is down 2.9% since the beginning of the week. It is trending for the first eight weeks in a row since 1932, while the S&P 500 and Nasdaq are trending for a seventh straight week.

Wall Street stocks have been under pressure this week. by revealing the results of the Kohl’s company yesterday. This was in line with previous disappointing results for Target, Loews and Walmart. And it reinforces that inflation has begun to affect the operating results of listed companies. especially the retail business

In addition, investors are concerned that The Fed raised interest rates quickly and strongly. Will result in the US economy into recession. After shrinking 1.4% in 1Q12, Fed Chairman Jerome Powell insisted the Fed would not hesitate to raise interest rates to the highest. if necessary to extract inflation.

The CME Group’s FedWatch Tool indicates that investors are now 100 percent weighed on the Fed’s rate hike of at least 0.50% at the other two monetary policy meetings, in June and July. After the Fed raised interest rates by 0.50% in May for the first time since May 2000. And it was the biggest interest rate hike in more than 20 years.

At the same time, the Fed plans to reduce the size of the balance sheet. (Quantitative Tightening : QT) which will start operations from June. The Fed will reduce its balance sheet by $47.5 billion a month. And after three months, the Fed will increase the balance sheet reduction to $95 billion/month.

Investors are keeping an eye on the minutes of the Fed’s May 3-4 monetary policy meeting, which will be released next week. To find out the direction of interest rates and the Fed’s QT.


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