The Dow Jones Industrial Average closed up more than 700 points on Friday (October 21). The US Federal Reserve (Fed) is likely to discuss a rate hike at a lower rate in December. That raises hopes that the Fed can be less aggressive in monetary policy.
The Dow Jones Industrial Average closed at 31,082.56, up 748.97, or +2.47%, the S&P500 closed at 3,752.75, up 86.97, or +2.37%, and the Nasdaq closed at 10,859.72, up 24,81% or +2.
All three indexes rose by the most weekly in four months this week. The Dow was up 4.89%, the S&P500 was up 4.74% and the Nasdaq was up 5.22%.
All 11 stocks in the S&P 500 index closed down, led by materials stocks up 3.46 percent, while financial and luxury stocks rose 2.92 percent.
US stock market rises behind Wall Street newspaper The newspaper reports that Some Fed officials have begun to express their desire to slow interest rates soon and are preparing to outline plans to approve a lower rate hike in December .
Mary Daly, president of the San Francisco Fed, said: It’s time to start talking about slowing rate hikes. This will help to avoid causing the economy to slow down due to an excessive increase in interest rates.
In addition, Chicago Fed President Charles Evans said: The Fed should raise interest rates to just over 4.5% early next year. and maintain the interest rate at that level thereafter
Analysts have widely predicted that the Fed will raise interest rates by 0.75% at its fourth meeting in November.
In the past, the US stock market faced pressure. As the Fed is aggressively raising interest rates in an effort to curb the extremely high inflation. which has added to the concern that implementing the wrong policy will put the economy into recession.
The New York Stock Exchange has rebounded from the decline in morning trading. which was weighed down by the collapse of Snap stocks. App owner Snapchat revealed quarterly revenue that rose at its lowest rate in five years as advertisers cut spending. due to inflation and geopolitical concerns
For individual stocks that have risen: Schlumberger shares jumped 10.33 percent, supporting energy stocks in the S&P 500 index that jumped 2.76 percent after the company reported better-than-expected quarterly profit.
Intel shares jumped 3.41 percent after it revealed it plans to announce layoffs in November.
The negative stocks in the market are: Snap, which closed 28.08 percent and weighed on others that rely heavily on advertising revenue, including Meta Platforms Inc, down 1.16 percent and Pinterest, down 6.40 the percent.
Other stocks that fell after a disappointing quarterly earnings report included American Express, down 1.67 percent and Verizon. Communication decreased by 4.46%.
Next week, markets will keep an eye on earnings releases from Twitter, Microsoft Corp, Alphabet and Apple.
Refinitiv data expects third-quarter results for S&P 500 companies to grow 3.1% in the third quarter, up from an early week forecast of 2.8%.
