On Wall Street, due to the growth of the technology sector and encouraging data from the US labor market, the stock index rose on Thursday, offsetting some of the decline in the previous three days.
The Dow Jones index rose 188 points or 0.55% to 34,084 points, while the S&P 500 index rose 1.06% to 4,159 points, and the Nasdaq index rose 1.77% to 13,535 points.
The world’s largest stock market is repeating the scenario of last week, when stock prices fell in the first three days due to fears of rising inflation to make up for some of the losses in the next two days.
Yesterday’s rise in the index was mainly due to the rise of technology stocks, whose prices have rebounded from the decline in previous days.
The fact that the number of new jobless claims dropped to 444,000 last week has also had a positive impact on the market. Analysts said that this shows that the pace of employment has accelerated this month.
However, investors remain cautious, and trading volume is lower than in the past 20 days.
This is the result of worry. Due to rising inflationary pressures, the Fed may tighten monetary policy faster than expected.
The latest records of the Fed’s most recent meeting show that some Fed leaders believe that if the economy continues to grow rapidly, there should be a period of debate on reducing government bond purchases, which aims to increase the liquidity of the financial system and keep interest rates low.
This worries investors because it means that the Fed may immediately start cutting incentives that have supported the economy for a year in recovery from the corona crisis and Wall Street growth.
Infrastructure Capital Management Director Jay Hatfield (Jay Hatfield) said: “Currently, there is only one market driver, and that is the Fed and the potential time to start cutting incentives.”
The index of the European Stock Exchange also rose yesterday. The London FTSE index rose 1.0% to 7,019 points, while the Frankfurt DAX index rose 1.70% to 15,370 points, and the Paris Civil Aviation Authority rose 1.29% to 6,343 points.