Wall Street has backtracked, and Reuters finished higher in the end-of-session rally

By Stephen Culp

NEW YORK (Reuters) – Wall Street was down from a high sell-off at the end of the session to close higher on Monday, and cheap hunters pushed indexes into positive territory by closing the hood.

It was close to confirming an earlier amendment as it appeared on the verge of closing at more than 10% higher than the last-year high reached on January 3, as investors focused on concerns about the increasingly troubled Federal Reserve and geopolitical tensions.

The S&P 500 rebounded 4.3 percentage points from the low end of its session since the March 26, 2020, rebounding from the global downturn caused by the Wall Street coronavirus pandemic.

Previously, indexes were more than 2% lower. The S&P seemed to be on its way to confirming a correction, and it seemed to confirm that it was in the bear market.

This sudden turn of the session saw the S&P 500 and the Nasdaq experience the biggest drop in the weekly percentage since March 2020, when pandemic disruptions led to a severe and violent recession in the economy.

“Correctional territory is often a sweet psychological place for investors. They see correction, and they see it as a healthy part of the market,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.

“When it all started selling, it got a lot of people’s attention, so I think we had what I would call a day-long capitulation, to get that easy money out of the market,” Dollarhid added.

The U.S. Federal Reserve will hold a two-day monetary policy meeting on Tuesday, and market participants will discuss its closing statement and subsequent questions from President Jerome Powell for instructions on the timeline for raising key interest rates to raise key interest rates. .

“I think investors are taking a very hawkish stance on the Fed,” said Sam Stovalle, chief investment strategist at CFRA Research in New York. “True, inflation is high and is likely to rise before it starts to fall. Specifically, we see the headline CPI at 7.3% in January and February, but then fall to 3.5% by the end of the year.”

A sign that geopolitical tensions are heating up, NATO has announced that it is stepping up its efforts to prepare for a possible Russian invasion of Ukraine.

The threat of a potential conflict in the region has helped reduce the U.S. Treasury’s yields, which in recent months have put pressure on stocks to halt the recent upward rise.

99.13 points, or 0.29%, to 34,364.5, the S&P 500 12.19 points, or 0.28% to 4,410.13, and the added 86.21 points, or 0.63%, 13,855 13th.

The top 11 S&P 500 sectors spent most of their trading day in the red territory, but with the exception of three at the close of the market, they were green. Discretionary consumption had the highest percentage gain.

Fourth-quarter reporting season is in full swing as 65 S&P 500 companies have released results. Of those, 77% were above expectations, according to Refinitiv.

Overall, analysts see the S&P 500 year-on-year growth of 23.7% in Refinitiv.

Some disappointing profits from big banks, and especially Netflix Inc. (NASDAQ 🙂 have turned off better-than-expected blockchain results.

International Business Machines (NYSE 🙂 shares gained more than 6% in overtime trading after the company exceeded its revenue expectations due to the strength of the cloud and consulting business.

Kohl’s Corp. (NYSE 🙂 has risen as Reuters has been preparing to bid for a large retail chain a few days after Sycamore Partners, a private equity firm sponsored by investment firm Starboard Value, proposed to buy it.

The decline was higher than the NYSE’s advance with a ratio of 1.49 to 1; On the Nasdaq, the 1.08 and 1 ratios favored declines.

The S&P 500 posted a new 52-week high of 1 and 31 new lows; The Nasdaq Composite recorded four new highs and 1,319 new lows.

US trading volume was $ 18.42 trillion per share, up from an average of $ 10.9 billion in the last 20 trading days.