Industrial shares are showing strength as evidence of a broadening stock market rally emerges. Analysts are optimistic about a potential pause in the Fed’s interest rates next week, and some even see a smaller chance of a US recession in 2023. According to Art Hogan, an analyst at B. Riley Financial, the rally is broadening and investor confidence in the Fed’s decision to not hike rates after subsequent meetings in 2023 is increasing.
The CBOE Volatility index, also known as Wall Street’s fear gauge, has dropped to a fresh post-pandemic record low. This decline in volatility reflects an unwillingness among investors to engage, as stated by David Bianco, Americas chief investment officer for asset manager DWS Group. The market seems to be experiencing a state of paralysis.
In terms of market performance, the Dow Jones Industrial Average rose by 168.59 points or 0.5% to reach 33,833.61. The S&P 500 gained 26.41 points or 0.62%, closing at 4,293.93, and the Nasdaq Composite added 133.63 points or 1.02% to settle at 13,238.52.
Several companies witnessed major gains in the Dow, including Boeing, Merck, and UnitedHealth. However, GameStop shares slumped by almost 18% after reporting a quarterly loss of US$50.5 million and terminating Matthew Furlong as chief executive. The company has appointed Mark Robinson, the general counsel, as the new general manager.
On the positive side, heavyweight Amazon.com Inc saw a gain of 2.49% after Wells Fargo initiated coverage on the company with an “overweight” rating. Additionally, Nvidia Corp, Apple Inc, and Tesla Inc experienced increases ranging from 1.55% to 4.58%.
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