U.S. stocks surged on Friday, 9th September 2022, with major indexes posting their first weekly gains in four weeks, as investors flocked to the market, shrugging off concerns about the economic outlook.
This comes after stocks began a sharp sell-off in mid-August on concerns about the impact of tighter monetary policy and signs of an economic slowdown in Europe.
Last week’s market rally was more related to previous overselling as uncertainty about inflation and Fed rate hikes remained high.
The market is waiting for the August CPI data due out on Tuesday for any signs that inflation may be slowing.
The report is expected to show that prices rose 8.1% year-over-year in August, compared with an 8.5% gain in July.
Headline inflation is expected to post its largest monthly decline since the worst of the pandemic in April 2020, aided by a pullback in gasoline prices.
All 11 major sectors of the S&P 500 closed higher, with communication services stocks, technology stocks, energy stocks, and consumer stocks leading the gains.
High growth stocks rose last week, a category that has been battered since the beginning of the year by fears of rising interest rates.
(Dow 30, 1-hour chart)
The Dow focuses on the 31661-line today. If the Dow runs steadily above the 31661-line, it will pay attention to the suppression strength of the 31995 and 32455 positions. If the Dow runs steadily below the 31661-line, it will pay attention to the support strength of the 31265 and 31000 positions.
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