New York, Sep 23 (BUS): The stock rose broadly in morning trading on Wall Street on Thursday, erasing weekly losses for most major indexes.
The gains come after Wednesday’s rally after the Federal Reserve indicated that it may begin easing its extraordinary support measures for the economy later this year.
Almost every stock in the S&P 500 is up. It is now up 0.2% this week and has recovered from Monday’s sharp sell-off.
Tech companies and banks have led the way up. Cloud-based software company Salesforce.com posted a 4.9% gain after increasing its sales forecast for the year.
Bond yields rose, which helped bank stocks rise. The yield on the 10-year Treasury rose to 1.36% from 1.32% late Wednesday. Citigroup shares rose 2.9 percent.
Other highlights include Darden Malik’s Olive Garden restaurants. Its stock jumped 8.3% after providing strong quarterly results, according to the Associated Press.
Investors got some reassuring news from China, where Evergrande, one of the country’s largest private property developers, said it will make a payment due Thursday on local bonds. Concerns about a possible default sent global markets reeling earlier in the week.
The Federal Reserve signaled on Wednesday that it may begin raising the benchmark interest rate sometime next year, earlier than was envisaged three months ago.
It also said it will likely start slowing the pace of its monthly bond purchases “soon” if the economy continues to improve. The Fed and other central banks have been buying bonds throughout the pandemic to help keep long-term interest rates low.
The central bank is closely monitoring job growth for a better gauge of economic recovery. The job market has seen a sporadic recovery amid the resurgence of COVID-19 with a highly contagious delta variant.
The latest Labor Department update shows that the number of Americans filing for unemployment assistance rose last week for the second week in a row, to 351,000.
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