New York, March 18 (EFE).- Wall Street left behind this week the significant losses suffered on the New York stock market after the invasion of Ukraine by Russian forces, and ended with significant advances in its three reference indicators, among which the those of the S&P 500, which marked its best week since November 2020.
The Industrial Dow Jones fell an accumulated rise of 5.5%, which in the case of the selective S&P 500 was 6.16%, and the Nasdaq index, in which the main technology companies are listed, was 8.18%.
European stock markets recorded a similar rate of growth: the Euro Stoxx 50 rose 5.85%; Frankfurt, 5.76%; Paris, 5.75%, Milan, 5.13%, London, 3.48% and Madrid, 3.38%.
Wall Street closed four of the five days in the green this week, an advance that was especially pronounced on Tuesday, Wednesday and Thursday, when the Dow Jones Industrials managed to advance more than 1% per session.
This is a significant rebound from the previous week, when uncertainties surrounding the conflict in Ukraine, the fallout from the trade war and the mounting economic pressure the West is putting on Russia caused sharp declines.
This week, however, investors focused on the meeting of the US Federal Reserve (Fed), which on Wednesday announced the first interest rate hike in the country since 2018 to control rampant inflation.
The market was relieved by the increase in interest rates by 0.25 percentage points, which places them in a range between 0.25 and 0.5%, a measure that has the objective of combating inflation that this year started from 2.6% and 4.3%, according to forecasts by the US central bank.
A balsam of calm was added this week to the hope caused by the talks between Russia and Ukraine, in which it has been suggested that both countries can reach a ceasefire after weeks of armed conflict.
The market has also had time to dig out the huge initial uncertainty caused by the conflict in Ukraine, which led to a market backlash and significant investment withdrawals.
“After having had time to analyze what is happening, it can be seen how the market is beginning to feel a little better, that there is a certain direction. It seems that the secondary effects on the economy are not being as detrimental as previously thought,” he explained to the specialized medium CNBC the director of investment strategy of Leuthold Group, Jim Paulsenen.
Despite the progress, the volatility has continued to be present, and experts suggest that it is likely to continue even longer.
“By 2022, volatility is going to continue to be the investor narrative,” said AXS Investments CEO Greg Bassuk. “Given the unprecedented level of very significant factors that could take the market in either direction, we don’t see the volatility going away in the next couple of months,” he added.
Texas oil for its part also suffered some volatility, although not as pronounced as last week, and ended at 104.7 dollars a barrel, above the 100 barrier, after falling to 95.04 dollars at the end of the Wednesday.
Elsewhere, the 10-year Treasury yield rose again to around 1.995%, gold ended the week near $1,990 an ounce and the dollar strengthened against the euro.
c) EFE Agency