U.S. stocks extended a broad-based rebound Friday, with Wall Street on pace to snap a three-week losing streak.
The S&P 500 jumped 1.6%, building on back-to-back sessions of gains, while the Dow Jones Industrial Average soared 400 points, or about 1.3%. Technology stocks led the way up, with the Nasdaq Composite climbing 2%.
Oil extended a volatile run as prices resumed their climb Friday. West Texas Intermediate (WTI) and Brent crude oil futures each rose 4% to $86.88 per barrel and $92.84 per barrel, respectively.
In a stark warning to the West on Friday, Russia said efforts to place price caps on the country’s oil and gas exports in sanctioning Russia for its war in Ukraine would fail and “lead to a slippery floor under its own feet.”
Meanwhile in cryptocurrency markets, Bitcoin (BTC-USD) moved above $21,000, just one day after sliding below $19,000. The coin’s rally buoyed shares of crypto stocks, including Coinbaise (COIN) — up more than 8% — and MicroStrategy (MSTR) — climbing more than 9%.
Investors continued to mull remarks made by Federal Reserve Chair Powell at the Cato Institute’s 40th Annual Monetary Conference in Washington D.C. on Thursday.
“The Fed has, and accepts, responsibility for price stability,” Powell said, again affirming the U.S. central bank’s commitment to mitigating inflation. “We need to act right now — forthrightly, strongly.”
Wall Street is anticipating with increasing certainty that Fed officials will deliver a third consecutive rate hike of 0.75% later this month, with a flurry of institutions raising expectations for the magnitude of increases on the Fed’s benchmark policy rate.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 7, 2022. REUTERS/Brendan McDermid
Bank of America, Goldman Sachs, and Nomura have all lifted their forecasts through year end.
“In our view, unchanged guidance about when the pace of rate hikes may slow suggests that Chair Powell and the Fed are comfortable with current market pricing,” BofA economists said.
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