NEW YORK (dpa-AFX) – After a mixed start to trading on Tuesday, the US stock market continued its recovery from the previous day. Some tailwind for Wall Street came from fresh economic data. US industrial orders rose more than expected in March. In addition, the recent surge in yields on the bond market has paused. Higher interest rates paint stocks in a worse light compared to bonds.
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The leading index Dow Jones Industrial increased by 0.42 percent to 33,200.80 points. The market-wide S&P 500 went up 0.77 percent to 4187.46 points. The tech-heavy Nasdaq 100, which fell to its lowest level in more than a year on Monday, is now up 0.51 percent to 13,142.44 points.
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Meanwhile, investors are eagerly awaiting the Fed’s interest rate decision on Wednesday, it said. In view of the high inflation, the key interest rate is expected to be raised by 0.5 percentage points.
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The Fed is facing the biggest rate hike since 2000. According to market observers, the central bank’s plans to raise interest rates and reduce its balance sheet will end an era of cheap money. According to the expert Mark Haefele from the bank UBS, investors have to prepare themselves strategically for the high inflation, but not yet for a recession. He thinks it’s likely that inflation in the US has already peaked.
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