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US stocks closed with big gains on Wednesday, supported by a jump in the Nasdaq index, amid investor optimism ahead of the US inflation report, which could pave the way for the Federal Reserve (the central bank of the US States) to slow the pace of raising interest rates.

Economists polled by Reuters had expected the highly-anticipated report, out on Thursday, to show US consumer prices rising 6.5% year-on-year in December, compared with a 7.1% rise in November.

The indices of the real estate sector and the consumer goods sector recorded the best performances of the day.

According to preliminary data, the Standard & Poor’s 500 index rose 50.06 points, or 1.28%, to close at 3,969.50 points, while the Nasdaq Composite Index rose 189.07 points, or 1.28%. 1.76%, at 10,931.70 points. The industrial index rose 263.24 points, or 0.78%, to close at 33,967.34 points.

Former Federal Reserve Chairman Alan Greenspan has warned that the US economy will experience a recession due to the Fed’s tightening policies.

Greenspan added: “Although the last two inflation reports have shown a slowing rate of price increase, that doesn’t change the fact that prices are still rising… Official inflation data may remain weak in the short term.” term only because of the methodology by which prices are measured.”

He continued: I don’t think this is enough for the Federal Reserve to reverse its monetary policy. I do not expect the Bank to ease its monetary policy out of fear of exacerbating inflation.

However, he doesn’t expect 2023 to be a volatile year.

Greenspan held the presidency of the Federal Reserve from 1987 to 2006, that is, he took over the presidency of the bank for 5 terms.

Separately, Greenspan warned that investors should be concerned about China, as it could invade Taiwan and cause a global economic crisis that would lead to a major sell-off in the market.