US Stocks Rise as NASDAQ Surges SignificantlyApril 15, 2022
Bidding for USA stock market products saw an increase this Wednesday for the midday session. The upsurge of the stock markets was led by NASDAQ, which continued despite the bond yields tumble. It is worth noting that the start of the fall began in January when the US Department of labor projected inflation rates reaching an all-time high for the first time in the last 40 years, citing 8.5% CPI.
Since then, Federal Reserve has announced an increase in the interest rates on their bond purchases. Following the Fed announcement, bond yields continued to show a cascading trend. The same phenomenon was further increased by the theories of economists about an upcoming recession period.
Big Wall Street Giants such as JP Morgan Struggle to Assert their Market Dominance
Traditional financial big wigs like JP Morgan Chase & Co. were unable to show an encouraging stock trend this week. The bulls are hoping that the earning output of their stocks can snatch the spotlight away from the inflation predictions. On the other hand, the Fed policy of inflating interest rates acted as added fuel to the fire.
In the middle of the stock market chaos, the Dow Jones Index that traces the top 30 companies in the USA reported DJIA to climb 203 points upwards. Meanwhile, S&P 500 Index jumped 36 points upwards, showing a 0.8% recovery on intraday. However, the biggest gainer was the tech sector, as visible from the NASDAQ Composite COMP index growth of 1.7% or 225 points.
Recently, Janet Yellen, the US Treasury Secretary, shared her grievances about the prolonged recession era that could hit European markets at any moment. On the other hand, the UK government also reported facing the biggest inflation rates in the last 30 days. Citing similar economic duress, New Zealand and Canadian Central Banks spiked interest rates by 0.5%.
Opimas LLC CEO Octavio Marenzi admitted that JP Morgan’s stock market earnings generated subpar results thus far. He further claimed that 20% equity returns and a 40% drop in financial stocks like JP Morgan could become the norm for a while owing to the pandemic cutbacks. Lori Calvasina, RBC Capital Market Strategist, said that amidst the recession projections, S&P 500 Index has managed to outperform its estimated growth potential from $224 in January to $230 in April. Other heavyweights like Black Rock and Delta Air Lines Inc. also produced unimpressive returns for Q1 2022.