NEW YORK, New York – U.S. stocks initially lost ground while the dollar rallied Thursday before buyers entered the market later in the day to reverse the course of fortunes.
“The market is rallied a couple of times under this false premise that the Federal Reserve is going to pivot and start cutting interest rates right. And time and time again, the Fed pushes back on that, and the market eventually gets the message, and we see a pullback. I don’t expect it to play out any differently this time,” BankRate Chief Financial Analyst Greg McBride told CNBC Thursday. “The economy is remarkably strong. Inflation is still hot. The labor market was tight. And all of that argues for a fed that is going to continue raising interest rates.”
“The market has not priced in the risk of recession. The market has not priced in the no landing scenario where the Fed has to continue raising interest rates because of elevated inflation and for the foreseeable future,” he said.
The Nasdaq Composite rose 83.33 points or 0.72 percent to 11,590.40.
The Dow Jones industrials gained 108.82 points or 0.33 percent to 33,153.91.
The Standard and Poor’s 500 advanced 21.27 points or 0.53 percent to 4,012.32.
On currency markets, the U.S. dollar pared gains towards the close Thursday but still managed to finish decently ahead.
The euro gave up the coveted 1.06 handle but by the barest of margins. The European Union currency was fetching 1.0599 just before the close Thursday.
The British pound managed to regain the 1.20 handle after dipping below it earlier on Thursday. The pound was trading at 1.2018 just before the close. The Swiss franc eased to 0.9334.
The Japanese yen weakened 0.17 percent to 134.65.
The Canadian dollar slid to 1.3542. The Australian dollar slipped below the 1.68 handle but regained it towards the finish, last quoted at 0.6811. The New Zealand dollar dipped to 0.6229, a loss of 0.22 percent.
Global stock markets closed mixed on Thursday, with some indices ending the day in the red while others managed to finish in positive territory. In the UK, the FTSE 100 closed down by 0.29 percent at 7,907.72 points, while France’s CAC 40 rose by 0.25 percent to 7,317.43 points. Germany’s DAX also finished higher, rising 0.49 percent to 15,475.69 points.
In Asia, Japan’s Nikkei 225 fell by 1.34 percent to 27,104.32 points, while Hong Kong’s Hang Seng Index dropped by 0.35 percent to 20,351.35 points.
China’s Shanghai Composite Index also ended the day down by 0.11 percent at 3,287.48 points, while the Shenzhen Index slipped by 0.13 percent to 11,884.30 points.
India’s S&P BSE SENSEX dropped by 0.23 percent to 59,605.80 points Thursday. Australia’s S&P/ASX 200 slipped by 0.40 percent to 7,285.40 points, while New Zealand’s S&P/NZX 50 INDEX GROSS rose by 0.80 percent to 11,888.50 points.
South Korea’s KOSPI Composite Index, on the other hand, finished up by 0.89 percent at 2,439.09 points.
In other regions, the MOEX Russia Index fell by 0.19 percent to 2,222.51 points.
Overall, global markets seemed to be affected by mixed signals, with some indices benefiting from strong earnings reports while others were weighed down by concerns over rising inflation and interest rates. Investors will be closely watching the markets in the coming weeks as they continue to assess the impact of these and other factors on global economic growth.