The market was relieved as the April figure, a consumption indicator, was higher than expected. In the United States, where consumption drives the economy, this indicator is important (but that does not mean that inflation concerns have been blown away). Powell said strongly that interest rates could be raised above neutral interest rates, but the retail sales index was overshadowed. )
New York Stock Exchange rose thanks to strong retail sales in April.|Author pokara61
Neutral interest rates are rates that lead to potential growth rates. The interest rate is the benchmark for the economy to achieve optimal growth without inflation or deflation. The Fed's role should be a policy of converging on neutral interest rates. The neutral interest rate is low, and interest rates far higher than the neutral interest rate may be tolerated to control inflation.
International oil prices slowed down. Europe failed to agree on a Russian oil embargo. Russia has received Mariupol. Western media continue to raise rumors of Putin's health problems.
Nasdaq 2.76% ↑ with solid consumption indicators and low-priced purchases
Seoul Economy 2022-05-1805:19
Dow up 1.37% and S&P up 2.02%
U.S. retail sales rose 0.9 percent in April
Powell "can raise interest rates above neutral"
Investors are good at what you say
Major indexes of the New York Stock Exchange rose all at once as indicators showing relatively strong U.S. consumption combined with sentiment that the drop has been large so far.According to the U.S. economic broadcaster CNBC on the 17th (local time), the Dow Jones Industrial Average of the New York Stock Exchange (NYSE) closed at 32,654.59, up 431.17 points (1.37 percent) from the previous day.
Standard & Poor's (S&P) 500 closed at 11,984.52, up 80.84 points (2.02%), up 4088.85 and NASDAQ 321.73 points (2.76%) at 11,984.52. CNBC said, "After weeks of sharp losses, attempts have emerged to recover."
On the same day, the market focused on optimistic retail sales data. U.S. retail sales rose 0.9 percent in April from the previous month, proving that consumption is solid despite inflation. Although it fell short of the market forecast of 1.0%, the market interpreted that solid consumption is emerging in a large framework.
The stock market slowed down a little after Federal Reserve Chairman Jerome Powell said, "If inflation does not fall, we can raise interest rates above neutral interest rates," but failed to dampen the upward trend. Overall, there were no comments that would shock the market.
By stock, Wal-Mart, which fell short of Wall Street's earnings forecast, plunged 11.38%. On the other hand, Home Depot, which performed better than expected in the first quarter, rose 1.67%.
Semiconductor shares also surged. AMD rose 8.73% on the same day, as well as NVIDIA (5.29%) and Qualcomm (4.32%).
However, there are many concerns that the overall weakness of the market could continue due to high inflation despite the rise of the day. Chris Senek, chief investment strategist at Wolfe Research, said, "The basic assumption of a bear market remains the same despite the recent rebound."
International oil prices fell on news that the European Union (EU) failed to agree on a Russian oil embargo and that U.S. sanctions for Venezuela's oil supply would be eased. On the same day, the New York Mercantile Exchange closed at $112.40 per barrel, down $1.80 (1.6 percent) from the previous day, down $1.80 (1.6%) from the previous day.