Home » The three major U.S. stock indexes opened lower and moved higher, collectively closed up oil and gas, and anti-epidemic sectors were among the top gainers – yqqlm

The three major U.S. stock indexes opened lower and moved higher, collectively closed up oil and gas, and anti-epidemic sectors were among the top gainers – yqqlm

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The three major U.S. stock indexes opened lower and moved higher, collectively closed up oil and gas, and anti-epidemic sectors were among the top gainers – yqqlm


The three major U.S. stock indexes opened lower and moved higher, and closed up collectively. The Dow rose 1.22%, the S&P 500 rose 1.23%, the largest three-day gain since November 2020, and the Nasdaq rose 1.33%.

Oil and gas and anti-epidemic sectors were among the top gainers,houston energyrose nearly 21%,American Energyrose more than 11%,Devon Energywestern oilrose more than 9%,PfizerAstraZeneca rose more than 2%; most of the popular Chinese concept stocks fell,Know almostfell nearly 21%,Bilibilifell more than 14%,Xiaopeng Motorsfell more than 9%,PinduoduoIQIYIfell more than 7%,ideal carJD.comfell more than 3%.

Further reading

Interest rate hike is not afraid! Taking history as a mirror: U.S. stocks have always been “frustrated and courageous” in the interest rate hike cycle

With the U.S. economy officially entering a “rate hike cycle,” investors are bracing for potential impacts, especially a stock market correction. But LPL Financial said on Wednesday that the S&P 500 index climbed after the Federal Reserve raised interest rates several times, taking history as a guide. Investors are bracing for the Fed to raise interest rates for the first time since 2018.

Federal Reserve officials said on Wednesday they would put the benchmark federalfundinterest rateUp 0.25 percentage points from near zero to between 0.25% and 0.5%, most officials expect at leastinterest rateRaised to levels before the pandemic hit the U.S. economy two years ago to stop the economy from overheating and reduce inflation, which is now at its highest level in 40 years.

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The S&P 500 has underperformed this year, in part because investors expect the Federal Reserve to release a series of rate hikes to curb inflation. U.S. inflation had risen to a 40-year high of 7.9 percent as of February.

The S&P 500 has fallen more than 9% so far this year, with all sectors except energy falling, as the Russia-Ukraine conflict sent U.S. stocks and the rest of the world lower.

In a note, LPL Financial reminded investors that the S&P 500 could still rise in such a scenario, even though borrowing costs would become more expensive.

LPL chiefmarketing strategyThe stock market “tends to do well” during periods of multiple rate hikes in history, said analyst Ryan Detrick. “We’re looking at the cycle around 2005,” he said. “There were 17 rate hikes in 2004, 2005 and 2006, but the S&P 500 was up all those years.”

“Investors need to remember that Fed rate hikes typically happen in the middle of the economic cycle, and the stock market and economy’s rally is likely to continue for several years,” he added.

The S&P 500 gained 9.1% in a year after the Fed raised interest rates by 0.25% in December 2015 under then-Chairman Janet Yellen, according to LPL data. The biggest increase on record, 39.6%, came a year after the March 1997 rate hike of 0.25%.

“The point is that rate hikes are generally not bearish events, and we don’t expect this cycle to be any different,” Detrick said.

Coincidentally.Investment research firm CFRA is also up-to-dateResearch reportThe S&P 500 is likely to fall in the month after the Fed raises interest rates, but then rise in the following months.

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“What’s more, since 1994, the S&P 500 has fallen five times in the first 30 days after it was first raised, but fell six months later,” wrote Sam Stovall, chief investment strategist at CFRA. Back to 80% upswing frequency.”

The performance of the S&P 500 typically improves gradually after the first month, he explained. Since 1994, the benchmark has fallen 0.8% three months after the Fed raised rates, then gained 6.4% and 12.2% at six and 12 months, respectively. (Source: Financial Associated Press)

(Article source: Financial Associated Press)

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