Wall Street ends higher following 7 straight weeks of losses

[Omaha Steve]

Source: AP

By DAMIAN J. TROISE and ALEX VEIGA

NEW YORK (AP) — Stocks closed higher on Wall Street Monday following seven weeks of declines that nearly ended the bull market that began in March 2020. The S&P 500 rose 1.9%, the Dow Jones Industrial Average rose 2% and the Nasdaq rose 1.6%. Banks and technology stocks made some of the strongest gains. Concerns about inflation have been weighing on the market and have kept major indexes in a slump recently. The S&P 500 is coming off its longest weekly losing streak since the dot-com bubble was deflating in 2001. The yield on the 10-year Treasury, which helps set mortgage rates, rose to 2.86%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — Stocks rallied in afternoon trading on Wall Street Monday following seven weeks of declines that nearly ended the bull market that began in March 2020.

The S&P 500 rose 1.8% as of 3:12 p.m. Eastern. The Dow Jones Industrial Average rose 588 points, or 1.9%, to 31,850 and the Nasdaq rose 1.3%.

Banks made strong gains along with rising bond yields, which they rely on to charge more lucrative interest on loans. The yield on the 10-year Treasury rose to 2.86% from 2.77% late Friday. Bank of America rose 6.3%.



In this photo provided by the New York Stock Exchange, specialist Douglas Johnson works on the trading floor, Monday, May 23, 2022. Stocks rallied in afternoon trading on Wall Street Monday following seven weeks of declines that nearly ended the bull market that began in March 2020. (David L. Nemec/New York Stock Exchange via AP)


Read more: https://apnews.com/article/wall-street-stocks-may-23-22bfa7c8926a0a97d184218f82bd471b

[Walleye]

1. Way to go Wall Street. Time to buy, I hope

Of course if I had been smart I would’ve shorted Tesla

[Shermann]

2. That's probably not a great long-term strategy

Musk is still full steam ahead growing that company.

https://www.fool.com/investing/2022/05/23/is-tesla-stock-a-buy/

[spooky3]

7. The market went up M and T of last week. Who knows

Whether this is the start of an upward trend, or just a bounce?

[IronLionZion]

12. The Fed is going to keep raising rates

so there could be a sell off after each rate increase. If buying, I would be cautious and do small amounts over time and keep a balanced diversified portfolio.

[FloridaBlues]

3. Happy to see this today.

[Marthe48]

4. Isn't Wall St. just a reflection of how much richer the rich are getting?

Their corporations' values. How many working class people with no savings or pensions are affected by the highs or lows of the stock market?

[progree]

6. I'm not "the rich" but nevertheless, it affects me and my puny "unrich" investments

When an oligarch loses half their net worth, it doesn't affect their lifestyle at all

the remaining half of their wealth is more than they know what to do with.

When a regular person loses half their savings, it sometimes means they can't retire when they planned to. Or there's not enough money for higher education for the children. Or themselves. Or they can't afford some earnings downtime as they pursue a different career or other goals, for example.

As for those without savings or pensions -- A sustained stock market declines adversely affect consumer and business confidence, resulting in a reduction in spending with ripple effects throughout the economy, causing slowdowns, reduced hiring, and sometimes recessions, that affect all people, hurting those with the least the most.

The stock market is a leading indicator. All recessions that I've looked at began with a severe stock market downturn several months before the GDP and employment downturns began. Similarly, most or all economic recoveries were preceded by stock market upturns.

[spooky3]

8. +1 it also affects the many retirees who depend on their

401ks etc.

[progree]

10. Yup, I could have said more about retirees, since I've been one for a long time

So I feel their/our pain personally.

Half my regular income is a FIXED DOLLAR annuity, that's lost 8.3% of its purchasing power in the past 12 months, according to the CPI. And it isn't going to "bounce back" and recover any of that loss -- unless we actually have deflation (which would be bad news in other ways). Instead, it is virtually certain to erode further, but hopefully at a slower rate.

[Karma13612]

13. That's me. Nt

[Walleye]

9. And you couldn't make any money on your retirement by investing it in the bank with zero interest

[Marthe48]

11. I have savings that depend on the stock market going up stay healthy

And I appreciate that, understand that a lot of IRAs and pensions are tied to the stock market. And losses that might wipe out half the wealth owned by a rich man, could cause ruin for someone like me. I just can't help thinking that Wall St. indicates wealth held by corportations much more than individuals. As for jobs, the economy, confidence, way too many people just stick to their lifelong habits and have no inkling of what the market means or the impact.

I don't know when the shorthand came into use, but it used to be when media reported on the Dow and other exchanges, the newsreader mentioned if the stock market was up or down, and what it closed at. Now, you have to hunt all over the place to find at what level the market closed or opened. So, today, it closed at 31261.90. Highest closing was 36799.65 points. People that aren't brokers or traders don't notice the Dow is down 5,537.75 from its high Jan. 4 2022. Wow. All of the markets are down, but they did better today. For some wealthy corporation or person, it means millions. For me, my annuity might not increase, but it might not decrease either.

Thank you for your insight. I really do appreciate your information.

[progree]

5. The move to the upside came after Pres. Biden said was considering easing tariffs on Chinese goods

https://finance.yahoo.com/news/stock-market-news-live-updates-may-23-2022-112701613.html

The moves to the upside came after President Joe Biden said he was considering easing tariffs on Chinese goods that had been imposed during the prior administration. Biden's remarks, made during a news conference with Japanese Prime Minister Fumio Kishida, came in turn after Treasury Secretary Janet Yellen said last week that she was encouraging the Biden administration to remove the tariffs she said imposed "more harm on consumers and business" in the U.S.

...

Since World War II, there have been 12 formal bear markets for the S&P 500, and 17 including “near bear markets,” or periods when the index fell by more than 19%, according to LPL Financial Chief Market Strategist Ryan Detrick. Of these, the average drop was about 29.6%, and lasted an average of 11.4 months.

However, when bear markets coincide with recessions, they tend to be worse, falling 34.8% on average and lasting 15 months, Detrick added. A recession tends to be considered after two consecutive quarters of negative GDP (gross domestic product) growth.

The S&P 500 is still down 17.2% from its January 3 all-time high and down 16.6% year-to-date.

A "formal" bear market is when it closes down 20% or more below a recent closing high, which hasn't happened since March 2020. On Friday it did trade down 20.6% interday, but closed above the negative 20% line.