What will the US Federal Reserve use as a basis for its next interest rate decision? Stockbrokers are still racking their brains over this question. Nevertheless, a small recovery rally is bringing prices back up.
After the sell-off of the past few days, Wall Street is on the up again. The Dow Jones index of standard values gained 0.54 percent on Thursday to 33,780.16 places. The broader S
"Markets appear to have found a small window of opportunity for a recovery rally ahead of next week's inflation data as they were oversold," said Dennis Dick, analyst and trader at broker Triple D Trading. The reason is the weekly initial jobless claims, which rose to 230,000 from 225,000 in the previous week. "This data shows that the labor market is weakening," said Thomas Hayes, manager at wealth manager Great Hill. "However, it is only one piece of data that could prompt the US Federal Reserve to raise interest rates more slowly. The data between December and February will be decisive for its longer-term monetary policy."
For the last Fed meeting of this year, which is scheduled for next week, the majority of market participants expect a rate hike of 50 basis points - less than the most recent decisions. However, there are fears that even smaller steps could be repeated long enough to trigger a recession.
Oil prices were unable to hold the initial gains thanks to corona easing in China. The prospect that a major crude oil pipeline from Canada to the US could soon be back online after repairs pushed prices back into the red. The North Sea variety Brent lost 0.18 percent to $ 76.01 per barrel (159 liters). The light US variety WTI crumbled by 0.81 percent to $ 71.43 per barrel.
Oil prices were higher after operator TC Energy announced a leak at 3am Central European Time, but investors have since changed their mind, according to analysts. "The concern is just gone and I think the pipeline will be back online in no time so there will be no significant loss of crude oil from this disruption," said John Kilduff, partner at investment advisor Again Capital.
The cautious optimism after interest rate concerns have recently resurfaced helped growth stocks such as Apple, Amazon and Facebook parent Meta to rise in price by up to 2.1 percent. Tesla shares, on the other hand, fell 0.34 percent. The e-car maker will cut production at its Shanghai plant due to falling demand in China.
Biotechnology company Moderna rose 1.7 percent to $182.10 after the US Food and Drug Administration approved its vaccine against the omicron variant of the coronavirus for children six months and older. Rent the Runway jumped 74.26 percent to $2.37 after the clothing rental company raised its sales guidance for 2022.
