United States stocks trade higher after heavy sell-off
- Author: Wendy Palmer Feb 16, 2018,
Feb 16, 2018, 2:39
Mester is a voting member in the USA central bank's rate-setting committee for 2018. In the early trading today, America's Dow Jones industrial average rose 278 points to 24,468, while the S&P 500 gained 0.6 per cent after rising as much as 1.4 percent.
British stocks dropped on Friday, posting their worst week in two years as a global sell-off pulled down shares in the most volatile sectors. Higher interest rates could threaten United States economic growth and prod some investors to shift funds away from stocks and into bonds.
The S&P 500 is down 17.61 points, or 0.7 percent.
Worries about inflation set the market rout in motion last Friday, and many market watchers have been predicting a pullback after the market's relentless march higher over the past year.
Dow and S&P 500 wiped out 5.2% of their value last week, marking their worst weekly downturns since January 2016. It remains down 7.3 percent from a record high on Jan 26 and is now priced at levels first reached in early December.
According to LPL Financial, it was the swiftest move from a record high to a correction in the history of the S&P 500.
Investors said data on US consumer prices and retail sales due out on Wednesday will be key to where stocks move in the short term.
Stocks closed sharply higher on Wall Street after another turbulent day of steep ups and downs.
Technology companies, the leading sector over the past year, and banks fell the most.
Benchmark U.S. crude gained 9 cents to $59.29 a barrel in NY. On the Nasdaq, 1,697 issues fell and 684 advanced.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.93 per cent while Japan's Nikkei shed 2.3 per cent, sealing a weekly loss of 8.1 per cent - its biggest since February 2016.
Twenty-First Century Fox picked up 66 cents, or 1.9 percent, to $36.40 after The Wall Street Journal reported that cable and Internet provider Comcast is still interested in buying Fox's entertainment divisions and could make another offer. "These types of moves tend to take about three weeks to get through the system. and volatility just doesn't suddenly settle down". The tech-heavy Nasdaq is still clinging to a 0.87 percent gain for the year. Earlier Tuesday morning, major companies reported another round of strong profits, with General Motors, BP, Allergan, several health-care companies and others beating analysts' expectations. CSRA climbed $9.57, or 31 percent, to 40.39 on Monday.
With no major data due on Monday, investors watched closely the latest news that the White House will unveil a long-awaited infrastructure plan that includes 200-billion-U.S. -dollar in federal spending over 10 years.