The Dow has turned more than 600 points amid recession concerns.

Dow Jones Index Closed Friday, up 8.77 points, after falling more than 600 in intraday trading, Goldman Sachs forecast there was a 35 percent chance of a recession in the United States over the next two years.

The Dow Jones Industrial Average rose 0.03% to 31,261.90 points, the S&P 500 rose 0.01% to 3,901.36 and the Nasdaq. fell 0.30% to close at 11,354.62 points.

The Dow fell more than 200 points on Thursday. Because investors are still 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.

Wall Street stocks rebound at first. This was driven by the People’s Bank of China (PBOC) cut interest rate for good customer loan (LPR) to stimulate the economy to recover from the impact of the lockdown measures.

The Dow is down 4% since the start of the week. The S&P 500 and NASDAQ index fell for the 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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