NEW YORK (dpa-AFX) – On Friday, the US stock market continued the recovery that started late the previous day with momentum. Market observers currently think it is conceivable that the US Federal Reserve could take its foot off the gas a bit on its rapid rate hike course if the economy slides into recession and inflation cools down a bit.
The leading index Dow Jones Industrial (Dow Jones 30 Industrial) rose after one hour of trading by 1.87 percent to 31,252.29 points, at 31,300 points it reached a high for two weeks. After a very weak previous week marked by recession worries with a minus of almost five percent, the New York leading index has picked up again in the past few days. A weekly plus of 4.6 percent is currently emerging.
The tech-heavy NASDAQ 100 rallied 2.62 percent to 12,003.85 points on Friday. It is also at its highest level for two weeks and is currently heading for a very positive weekly balance with a plus of 6.5 percent. The market-wide S&P 500 rose 2.19 percent to 3878.87 points on Friday.
In terms of news, the logistics company FedEx provided a topic of conversation with a surprisingly good business outlook. That sent shares jumping 8.5 percent to their highest level since February. Even though supply chain problems and higher costs have been troubling the industry recently, the group generated significantly more sales and operating profit rose in the most recent fiscal quarter.
In general, sectors such as banks and IT, which had been hit hard in June because of concerns about the economy, recovered strongly. This drove investors back into Dow stocks such as Salesforce and Goldman Sachs, which rose 4.2 and 5.9 percent, respectively. From the industrial sector, Boeing stocks also rose significantly by 4.9 percent.
In the banking sector, it helped that the largest financial institutions in the USA have crisis-proof capital resources, according to the Fed. All 34 major banks passed the financial regulators’ annual stress test. With the endurance test, they want to ensure that lending to companies and households does not come to an abrupt halt in the event of a financial market collapse. On the broader market, Wells Fargo (Wells FargoCo) was up 6.4 percent.
With a price jump of 28 percent, the Zendesk share (Zendesk) caused a sensation. However, the momentum was less clear than in pre-market trading, when premiums of almost 50 percent had already been paid. According to circles, the company could be about to be taken over by a group of financial investors led by Hellman & Friedman and Permira