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U.S. Stocks Surge as Worry over Aggressive Fed Hikes Eases

Published 06/24/2022, 09:39 AM
Updated 06/24/2022, 09:43 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks rallied on Friday as investors try to break a three-week losing streak and end on a positive note.

At 1:24 PM ET, the Dow Jones Industrial Average was up 656 points or 2.1%, while the S&P 500 was up 2.4% and the NASDAQ Composite was up 2.4%.

Investors have been concerned about a recession ahead as several Wall Street economists raise the odds of one happening sometime in the next 12 months. With the housing market showing signs of cooling, new home sales data for May was unexpectedly strong, rising an annualized 696,000.

But Michigan consumer sentiment , the final reading for the month, was a tepid 50, slightly lower than the 50.2 expected and the lowest since the late 1970s.

But Friday's rally showed investors determined to end the week on a high note after putting fears about aggressive rate hikes by the Federal Reserve on the back burner. 

Carnival Corporation (NYSE:CCL) rose 11% after the cruise operator said second-quarter revenue increased nearly 50% from the first quarter.  

Shares of auto dealer CarMax Inc (NYSE:KMX) rose 5% after it beat earnings expectations despite a challenging environment.

FedEx Corporation (NYSE:FDX) shares jumped 7% after earnings beat estimates on higher rates and fuel surcharges, which overcame declining shipping volume. The logistics giant released an optimistic forecast for fiscal 2023. 

Oil rebounded. Crude Oil WTI Futures was up 2%, to $106 a barrel, while Brent Oil Futures crude was up 1.9% to $112 a barrel. Gold Futures were flat at $1,830.

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Latest comments

Interesting that "worries" over aggressive rate hikes are decreasing when we all already know for certain the fed will aggressively hiking rates 2 to 3 more times. This has been oft stated over and over by many different outlets, economists, thems and theys.
mortgage rates look rising above 10% soon. maybe all taxes go to interest payments
good luck with that thought. Bond market is pricing in recession, not inflation, as demand drops lenders will be dropping rates to attract buyers, not raising them. Mortgage rates likely top at 6.5%.
too early to say upbeat note
What happens when Fake-News infects Wall Street? (Fundamentals dont matter, until a Great Depression occurs!)
The Wall Street is in the business of making a news to move the price in the direction they need :) The machines never loose. They flip the direction and continue to bring money to their masters.
Prepare for the big fall later on today...hedge fund daddies have GF rent payments coming up they need your cash to pay for IT.
the Feds are OUT of Bullets!
The Stock "Racket" is OVER Priced. & that is the Point of Demand/Sales Destruction ... don't buy High, aka Greater Fool Theory! Love!
insane and stupid so called investors will soon be perished in no time. the stupidity at its finest
Its upbeat because end of month roatation from cash to equity! Going back down next month! GDP numbers are bad, inflation still bad, recession around the corner!
It's upbeat because market fear of the Fed raising rates too much too quickly is ebbing.
I think next Wednesdy everyone will learn that recession is here already.
This is totally bull ********note!
Fed has to raise 100 bp at next meeting
The final descent for this bear market is still ahead of us.
oil is rising recovery is almost done...and inflation Will pickup again
fed raises late and slowly rates, pretending to be worried about inflation...but forgetting to remove the Liquidity from the market , selling the Junk bonds that bought totally disconnected from reality....
Consumer sentiment hits record low, and the biggest investment joke in the world "rallies" untethered.  Another financial knife in the back of America heading into the weekend.
Not "record low".  Look further back in the records.
Yes, everything is fine (NOT!)
Nobody is claiming "everything is fine".  Market doesn't need that to go up, either.
The fraud and flagrant, criminal manipulation goes pedal to the metal, as Friday FRAUD unfolds in living color.  Welcome to the US Ponzi Scheme, laughingstock of the financial world, as it financially dismantles the US working class in broad daylight.
  He's the glass all empty kind.
Mitchel is always crying whether the market is up or down
holding some heavy bags there eh? trade better. or go away.
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