Five-day losing streak ends for Wall Street

US stock indices closed higher on Tuesday, with the NASDAQ leading the positive wave as investors took comfort from Federal Reserve Chairman Jerome Powell’s testimony before Congress that delivered no major surprises.

After falling 1% earlier in the day, the tech sector, sensitive to rate changes, rebounded and boosted indices.

Thus, Apple gained 1.68%, Facebook rose 1.43% and Amazon rose 2.40 percent.

On Wednesday, the market expects inflation in the United States, and analysts are aiming for 7% a year, after 6.8% in November.

Powell said the central bank’s plans to tighten monetary policy this year were not undermining strong employment in an economy that “no longer needs or wants massive stimulus.”

“The reaction we’re getting today is a reflection of things we already know,” said Art Hogan, chief market strategist at National Securities.

The S&P 500 Index broke a five-day slide, while the NASDAQ extended Monday’s gains as big tech stocks rose after being hit by rising bond yields.

Equity markets have been hit since the beginning of this year after minutes from the Fed’s December meeting signaled an earlier-than-expected rise in interest rates due to mounting inflationary pressures.

The Dow Jones Industrial Average rose 0.51% to 36,252.02 points; the S&P 500 gained 0.92%, to 4,713.07 units and the NASDAQ Composite advanced 1.41%, to 15,153.45 whole.

“The market returned to the winning track after the testimony of the president of the Fed in his hearing of confirmation for a second term in charge of the central bank”, summarized the analysts of Schwab.

JPMorgan CEO Jamie Dimon said investors should expect a turbulent ride in 2022 and believes the Fed will raise interest rates at least four times this year, if not more.

“Personally I would be surprised if it was only four raises,” Dimon told CNBC on Monday.

“I think that four increases of 25 basis points is a very, very small amount and very easy for the economy to absorb.”

In Mexico they also win

In the Mexican stock market, the main index of the Mexican Stock Exchange, the S & P / BMV IPC gained 0.43% to 53,061.92 points, while the FTSE BIVA, of the Institutional Stock Exchange, rose 0.41% to 1,095.99 units.

Within the IPC, the 6.21% gains of Pinfra stood out, as well as the 2.94% of Alfa.

For its part, Genomma Lab fell 2.62% and Banorte lost 2.16 percent.

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