[Economics] Wall Street closes with profits and good forecasts for the economy

[Draeno]

 

Wall Street closed a volatile week with gains in its main indicators, driven especially by the data released this Friday that point to the strength of the United States economy.

The Dow Jones Industrials broke a four-week losing streak by advancing an accumulated 1.75% in the last five days, while the selective S&P 500 broke a three-week losing streak by advancing 1.90%.

The Nasdaq index gained a remarkable 2.58% accumulated in the week, reinforcing the good performance of the technology sector after the significant losses it registered in 2022.

The month of February ended Tuesday with losses due to fears of more aggressive interest rate hikes by the Federal Reserve, taking into account that the economy remains resilient.

That perspective has led to a rise in the yield on the 10-year Treasury bond, which on Thursday exceeded 4% for the first time since November but lost that level today, giving the stock market a breather.

Although the resilience of the economy gives more arguments to the central bank to toughen its policy, this Friday investors seemed to focus on the positivity of the latest measures.

The services sector PMI index rose in February to 50.6, its highest reading since June, indicating expansion, while another related index, the ISM, was down a tenth to 55.1 but above expectations.

"Product activity is only gradually contracting, while the services sector continues to expand at a solid pace according to the February ISM releases," Wells Fargo analysts said in a note.

On the other hand, optimism has reached Wall Street about the economic recovery of China and its potential increase in demand once the harsh restrictions to contain the covid-19 are lifted.

The expectations for China have boosted assets such as gold, which has appreciated more than 2%, up to around 1,861 dollars an ounce; or oil, which has done so by more than 4%, up to $79.68 a barrel in Texas.

At the corporate level, the results season is in its last throes but the rise of the technology company Salesforce has been notable, almost 15% in one week, after reporting a good quarter and offering good business forecasts.

EFE

 

https://www.portafolio.co/internacional/wall-street-cierra-con-ganancias-y-previsiones-buenas-de-la-economia-579376