Wall Street indicies grew after dropping for four consecutive days. The Dow Jones strengthened by 0.33 percent to 33,153 points, while the S&P 500 rose by 0.53 percent to 4,012 points and the Nasdaq index by 0.72 percent to 11,590 points, reports Mina.
After strong growth in January, the indices lost some of those gains in February as hopes that the US central bank, the Fed, would soon end its rate hike cycle faded.
The Wall Street indexes rose, but they alternated in positive and negative territory throughout, as investors were uncertain.
All the latest data show that the economy is very resistant to an aggressive increase in interest rates by the Fed, which means that inflationary pressures could remain heightened for a longer period than the market expected.
Claims for financial aid for the unemployed are on the decline
The US gross domestic product (GDP) grew by 2.7 percent in the Q4 of last year, slightly less than analysts’ expectations but still solid.
US also announced that last week the number of first claims for unemployment benefits unexpectedly fell, which shows that the labor market is still strong, which supports inflation. For this reason, it is estimated that the Fed will raise interest rates at least two or three more times to 5.35 percent by July, and the money price will remain at those levels until next year.
Meanwhile, on most European stock exchanges, share prices have risen. However, the London FTSE index weakened by 0.29 percent to 7,907 points, but the Frankfurt DAX strengthened by 0.49 percent to 15,475 points, and the Paris CAC by 0.25 percent to 7,317 points.
