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

Stock Markets Jun 24, 2022 01:30PM ET
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© 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 3 PM ET, the Dow Jones Industrial Average was up 699 points or 2.3%, while the S&P 500 was up 2.6% and the NASDAQ Composite was up 2.7%.

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. The Fed raised its benchmark rate by three-quarters of a percentage point earlier this month and was on track for another half-point to three-quarter point increase at its July meeting. Fed Chair Jerome Powell acknowledged in congressional testimony this week that recession was a risk, but he also said the economy was strong enough to withstand successive rate increases.

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 6% 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 were up 3%, to $107 a barrel, while Brent Oil Futures were up 2.6% to $113 a barrel. Gold Futures were flat at $1,830.

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

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Comments (18)
Kerry Ditto
Kerry Ditto Jun 24, 2022 4:07PM ET
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stock price inflation is the worst. Fed might be targeting stock market bubble.
Mitchel Pioneer
Mitchel Pioneer Jun 24, 2022 4:02PM ET
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BIGGEST INVESTMENT JOKE IN THE WORLD hand placed above 31.5 at the close.  Hope you assumed the proper position for the weekend America.
Mitchel Pioneer
Mitchel Pioneer Jun 24, 2022 3:48PM ET
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Another circus display by the laughingstock of the financial world.
Mitchel Pioneer
Mitchel Pioneer Jun 24, 2022 3:47PM ET
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Biggest investment JOKE in the world heading to a closing high.  Savvy "investors" just love holding over the weekend.  No "late trade" shenanigan's during a manufactured "rally," as the sellers are nowhere to be found.  A completely unrealistic lack of profit taking.  Truly, the laughingstock of the investing world.  Wall Street laughs in the face of America once again.
Otb Investor
Otb Investor Jun 24, 2022 3:43PM ET
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Down on Monday. Up on Tuesday next week... Sweet!!!
Stan Smith
Stan Smith Jun 24, 2022 3:41PM ET
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. .the Inflation elephant is still sitting in the middle of the room!
Tiberius Augustus
Tiberius Augustus Jun 24, 2022 3:35PM ET
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It’s amazing the moves 500 to 700 point in one session on average
Fozzy Ferdinand
Fozzinand Jun 24, 2022 3:35PM ET
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Signs of a recession. It did the same thing in 2000 and 2008.
Kerry Ditto
Kerry Ditto Jun 24, 2022 3:12PM ET
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Everything is timing. Fed lost timing to raise interest rates. That is huge problem.
Kerry Ditto
Kerry Ditto Jun 24, 2022 3:06PM ET
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Sharply rising oil prices and bond yields today mean forced aggressive Fed.
Jamar Vaz
Jamar Vaz Jun 24, 2022 3:03PM ET
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All this movement up is only profit taking. We’ll be back to normal bear market soon enough. People cashing out because of the weekend.
 
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