Wall Street stocks made a modest recovery on Friday after experiencing significant declines the previous day, triggered by the Federal Reserve’s announcement signaling a prolonged period of higher interest rates. Federal Reserve Chairman Jerome Powell’s statements offered little assurance that the U.S. economy would steer clear of a potential recession.
At the opening bell, the S&P 500 inched up by approximately 0.2%, while the Dow Jones Industrial Average held relatively steady, and the Nasdaq Composite saw a 0.5% uptick. Meanwhile, the yield on the 10-year Treasury stabilized after reaching its highest point in over 15 years on Thursday. Eyes are now on the upcoming September U.S. manufacturing and services activity updates from S&P Global, which are expected to add fuel to the ongoing debate surrounding the Federal Reserve’s ability to engineer a “soft landing” for the economy.
On the international front, the Bank of Japan stood firm on its ultra-low interest rates on Friday, reiterating its commitment to bolstering the economy, indicating no imminent alterations to its extensive stimulus program. Following this decision, the yen depreciated against the dollar.
In the realm of individual stocks, Activision Blizzard’s shares made strides toward closing in on Microsoft’s proposed acquisition price. Simultaneously, the United Auto Workers (UAW) union hinted at escalating walkouts as part of its escalating strike against GM, Ford, and Stellantis, the parent company of Jeep. Despite a marathon session of negotiations, the major studios—Warner Bros., Discovery, Disney, Netflix, and NBCUniversal—failed to reach an agreement with the striking writers.
Wall Street stocks appear to be steering towards a recovery after grappling with significant losses, all while an ongoing discussion about the Federal Reserve’s proposed measures and various economic events continue to shape the market landscape. Investors and analysts will be closely monitoring these developments for further insights into the trajectory of Wall Street stocks in the days ahead.
Source: Yahoo Finance
