S&P 500 closes higher to end longest losing streak since October; European markets close lower as nervousness over the global economy dominates sentiment
Stocks rose Thursday as the S&P 500 broke its longest losing streak since October and Wall Street evaluated the odds of a recession ahead.
The S&P added 0.75% to finish at 3,963.51. The Dow Jones Industrial Average gained 183.56 points, or 0.55%, to settle at 33,781.48, while the Nasdaq Composite rallied 1.13% to end at 11,082.00.
Investor attention remains laser-focused on next week’s Federal Reserve policy meeting, where the central bank is widely expected to issue a 50 basis point interest rate hike. It’s a smaller increase than the prior four rate hikes, but may do little to alleviate recession fears as the Fed attempt to squash surging prices.
The Federal Trade Commission is suing to block Microsoft’s takeover of Activision Blizzard, the regulator announced Thursday.
Microsoft agreed to buy the video game company for $95 per share in January, though the deal has always been viewed with skepticism on Wall Street. Activision’s stock has consistently traded well below the offer price, suggesting that many investors expected a challenge from antitrust regulators.
Microsoft was last up less than 1%, while Activision Blizzard fell more than 2%.
The pan-European Stoxx 600 ended down 0.2%, with most sectors in negative territory. Retail led losses down 1.2%, while mining stocks gained 1.2%.
Euro zone government bond yields hovered just above their lowest levels for months as investors look toward the European Central Bank’s policy meeting next week.
Inflation in the bloc is close to its peak, Reuters reported, citing comments made by ECB officials this week, which has heightened expectations of a slowdown in interest rate hikes. The interest rate is likely to be raised by 50 basis points, a slowdown from the unprecedented 75 basis point hike in October.
Source: CNBC, Investing.com