2024-03-22 21:16:41
Dow Jones falls 305 points at the end of a strong week for US stocks
The Dow Jones Industrial Average of US stocks lost 305 points in Friday trading, but it recorded its best week in 2024, after reaching record levels, driven by the Federal Reserve’s confirmation of its adherence to the plan to reduce interest rates three times, before the end of this year.
By the end of trading on the last day of the week, the decline points in the most famous index in the world represented 0.77%, the S&P 500 index fell by 0.14%, while the Nasdaq index rose by 0.16%, recording a new record close.
The three major indices achieved strong gains this week, with the S&P 500 index rising by about 2.3%, and the Dow Jones index rising by 2% in its best week since December, while the Nasdaq index was the best performing of the three indices, as it jumped by Approximately 2.9%.
“It’s a period of digestion after a really strong week,” Keith Lerner, co-chief investment officer at Truist, said of Friday’s moves. “Our view is that the overall trend is still positive for the market, especially when you see this breakout to new highs.” “On the way to achieving gains for the fifth month in a row.”
The strength of the stock market this week was reinforced by what Jerome Powell, Chairman of the Federal Reserve, said after announcing that base interest rates would be fixed at 5.25% – 5.50% for the fifth meeting in a row.
Powell said the cuts are coming despite a recent wave of hot inflation readings that have led some investors to fear the estimated timeline for rate cuts will be delayed until the end of the year. He indicated that he and his colleagues at the bank adhered to the previously announced plan, which stipulates reducing US interest rates three times in 2024.
“That was enough for the market to go higher,” Lerner said.
On the other side of the Atlantic, European stocks rose to end the week’s trading near their highest levels ever, with British, German and Italian stocks outperforming their counterparts in the region, after a series of major central banks’ signals this week to begin a monetary easing policy.
The STOXX 600 index of European stocks ended trading on Friday stable, but achieved its ninth consecutive weekly gain, after reaching an unprecedented level earlier in the day.
The gains incurred by the index of real estate companies and the index of utilities companies that are less sensitive to fluctuations compensated for the losses incurred by the index of technology companies that are sensitive to interest rates, and the index of personal and household goods, which was affected by the decline in Chinese markets.
The British FTSE 100 index rose by 0.6% to its highest level in a year, recording 7,930 points.
In the oil market, prices fell today, Friday, without significant change over the course of the week, as the possibility of a ceasefire in Gaza weakened crude indicators, while the war in Europe and the decrease in the number of American drilling rigs mitigated the severity of the decline.
Brent crude futures for May delivery fell by 35 cents to settle at $85.43 per barrel, while US crude futures fell by 44 cents to settle at $80.63 per barrel. Both crude oil prices recorded a change of less than 1% during the week.
John Kilduff, a partner at Again Capital, told Reuters, “Everyone is anticipating what the weekend will bring for Gaza,” adding that successful peace talks will push the Houthi militants in Yemen to allow oil tankers to pass through the Red Sea.
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