Wall Street Ends The Day With Strong Gains, European Stocks Extended Rebound.
London, Monday, 23 May 2022
US Markets Summary
Investors brushed off recent volatility and processed fresh trade-related words from the Biden administration as markets gained Monday, ending a seven-week losing skid on a more stable foundation.
After falling into bear market territory during Friday's session, the S&P 500 gained nearly 1.9 percent by the end of the trading day.
The index ended Monday's session at 3,973.75, still down more than 17% from its recent record high set on Jan. 3.
The Dow finished the day at 31,880.24, up roughly 600 points or nearly 2%.
The Nasdaq rose 1.6 percent to 11,535.27 points.
The gains came after Vice President Joe Biden stated he was considering lowering tariffs on Chinese imports imposed by the previous administration.
Biden's comments came during a joint press conference with Japanese Prime Minister Fumio Kishida, and came after Treasury Secretary Janet Yellen said last week that she was pressing the Biden administration to remove tariffs that she said harmed "consumers and businesses" in the United States.
Main moves in markets as of 4:02 p.m. ET:
· S&P 500 (^GSPC): +72.49 (+1.86%) to 3,973.85
· Dow (^DJI): +618.74 (+1.98%) to 31,880.64
· Nasdaq (^IXIC): +180.66 (+1.59%) to 11,535.27
· Crude (CL=F): +$0.06 (+0.05%) to $110.34 a barrel
· Gold (GC=F): +$10.90 (+0.59%) to $1,853.00 per ounce
· 10-year Treasury (^TNX): +7.2 bps to yield 2.8590%
(Source: Yahoo Finance // Edit by: The Decision Maker)
European Markets Summary
Even with continued headwinds from tighter monetary policy and inflation, European equities rose for the second consecutive session on Monday, with the pan-European STOXX 600 and the DAX 30 each gaining around 1%.
According to a poll conducted by the Ifo Institute, German business confidence surprisingly jumped to a three-month high of 93, showing that Europe's largest economy is not in recession.
At the same time, markets were digesting the ECB's more hawkish signals.
President Christine Lagarde stated that the central bank's deposit rate would most certainly be lifted out of negative territory by September.
In terms of individual stock price movement, Siemens Gamesa increased by more than 6% following a €4.05 billion buyout offer from Siemens Energy.
(Written and edited by: The Decision Maker)