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.

Similar

Which online betting platform to choose between Melbet, Betwinner and 1xbet? Payment methods and withdrawal policies
Which online betting platform to choose between Melbet, Betwinner and 1xbet? Payment methods and withdrawal policies
When it comes to choosing an online platform for sports betting and casino games, it's essential to consider the payment methods available and the withdrawal policies. Here, we compare three popular platforms: Melbet, Betwinner and 1xbet. You'll discover the payment options offered by each of...
Facebook to invest in Australia's news industry
Facebook to invest in Australia's news industry
After a heated argument with the Australian government which led to the social media company blocking Australian news pages on its platform, Facebook has decided to invest up to $1 billion in installments in the Australian news industry.  Facebook follows Google's previous 1billion investment in...
Discover The Traveling Conditions To USA
Discover The Traveling Conditions To USA
There is no doubt that the destination in the United States of America tempts thousands be of foreigners to the point of migrating there every year. This migratory flow is growing to such an extent that not a day goes by that volunteers from Uncle Sam’s Country are noticing themselves in American...