Wall Street gradually bouncing back after its drastic drop

Wall Street gradually bouncing back after its drastic drop

Federal Reserve chairman Jerome Powell's speech about the low possibility of inflation in the future reduced the number of stocks- especially technology-based stocks- sold in the stock market.  

An example is the Nasdaq index, which increased from its 1.3% trade-off. The Dow also increased in value. 

The US central bank will need three years to attain its inflation objective 

In his speech to lawmakers in the US Senate, Powell said the central bank might not reach its inflation target anytime soon, which means the reserve plans to leave interest rates unchanged in the foreseeable future. 

A chief investment officer at treasury partners said in a statement that the stock market activity is caused by "the fiscal stimulus, the dovish Fed, the real strength, strong earnings that we’re seeing, as well as the fact that we’re going to have a third vaccine." 

Johnson & Johnson's shares rose in value after the food and drugs administration announced that the company's vaccine passed its clinical trials. 

US investors are observing the increasing US stock yields 

Richard Saperstein, a chief investment officer, said in a statement that the increasing value of stocks will not have a negative impact on the stock market. He added that a 9+ stock yield won't change the importance of owning technology-based stocks. 

The S&P 500 industry also reached historical levels, while other industrial and energy-based stocks experienced growth.   

The S&P 500 Growth index, made up of popular technology stocks, experienced a massive drop in value this past week. Their value dropped due to inflation fears and redirection of investment efforts into other sectors. 

Stocks in companies like Microsoft Corp, Amazon.com Inc, and Apple Inc dropped, while Facebook, Netflix Inc, and Alphabet Inc slightly increased. Tesla's stock also increased in value after a popular investor bought $171 million worth of Tesla's shares.

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