Wall Street snaps back following worst week since February | National News
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A man walks past an electronic stock board flashing Japan’s Nikkei 225 index in Tokyo Monday, June 21, 2021. Asian markets skidded on Monday, with Japan’s Nikkei 225 index down 3.4%, after a sell-off Friday on Wall Street gave the S&P 500 its worst weekly loss since February.
A woman walks past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, June 21, 2021. Asian markets skidded on Monday, with Japan’s Nikkei 225 index down 3.4%, after a sell-off Friday on Wall Street gave the S&P 500 its worst weekly loss since February.
People walk past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, June 21, 2021. Asian markets skidded on Monday, with Japan’s Nikkei 225 index down 3.4%, after a sell-off Friday on Wall Street gave the S&P 500 its worst weekly loss since February.
People walk past a bank’s electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Monday, June 21, 2021. Asian markets skidded on Monday, with Japan’s Nikkei 225 index down 3.4%, after a sell-off Friday on Wall Street gave the S&P 500 its worst weekly loss since February.
The facade of the New York Stock Exchange, is seen Wednesday, June 16, 2021. Stocks are opening mostly higher on Wall Street, getting the week off to a positive start after the S&P 500 posted its biggest weekly decline since February. The benchmark index was up 0.3% in the first few minutes of trading Monday, June 21.
NEW YORK (AP) — Stocks rebounded on Wall Street Monday, clawing back most of their sharp loss from last week, as the initial jolt passes from the Federal Reserve’s reminder that it will eventually offer less help for markets.
The S&P 500 snapped 58.34 points higher, or 1.4%, to 4,224.79 and recovered nearly three-quarters of its worst weekly loss since February. Oil producers, banks and other companies that were hit particularly hard last week led the way.
The Dow Jones Industrial Average gained 586.89, or 1.8%, to 33,876.97, and the Nasdaq composite rose 111.10, or 0.8%, to 14,141.48.
Investors are still figuring all the ramifications of the Fed’s latest meeting on interest-rate policy, where it indicated it may start raising short-term rates by late 2023. That’s earlier than previously thought. The Fed also began talks about slowing programs meant to keep longer-term rates low, an acknowledgment of the strengthening economy and threat of higher inflation.
The market’s immediate reaction to last week’s Fed news was to send stocks lower and interest rates higher. Any shift by the Fed would be a big deal, after investors have feasted on easy conditions with ultra-low rates for more than a year. Higher rates would make stock prices, which have been climbing faster than corporate profits, look even more expensive than they do already.
