Dow Jones Edges Higher as U.S. Stocks Recover
U.S. stocks recovered on Monday following concerns surrounding the Fed’s possible interest rates’ rise due to economic recovery. This pushed the Dow Jones (USA 30-Wall Street) to its highest one-day rise since May.
Stocks Rise Despite Interest Rate Concerns
Investors may have been worried that the Fed would seek to increase interest rates because of the recent economic recovery, but officials have recently signaled that such measures will be pushed off.
Following the previous four-week slump in some stock prices, the recovery was spread broadly across all sectors, with bank and energy sector shares leading the rise. ConocoPhillips (COP) jumped over 5% on Monday to close at $60.66, and Morgan Stanley (MS) stabilised at $86.25 following last Friday’s drop of over 4.3%.
These and other price jumps may have pushed the Dow Jones (YM) up by 1.7% by the end of the trading day on Monday. The gains have not been limited to the Dow; the Nasdaq 100 (NQ) rose almost 0.7% on Monday over last Friday’s closing price. Likewise, the S&P 500 (ES) climbed over 1.4% compared to last week’s closing.
Stock Price Recovery Spreads
Stock price jumps have also made their mark on other indices across the globe; London’s FTSE 100 (UK100) climbed almost 0.7% on Monday, while the Japanese Nikkei 225 (NIY) rose over 1.6% from the opening of trading on Monday to the opening on Tuesday.
Global indices weren’t the only market rise on Monday; the currency pairs EUR/USD and GBP/USD also opened this trading week with a slight bump. The former closed the trading day with an increase of over 0.5%, while the latter jumped 0.8% over the course of the trading day on Monday. This could possibly be due to the Federal Reserve’s cooling of fears surrounding interest rates.
Will indices continue rising or will investors’ concerns return to the fore?