Yellen’s words eased recession fears, sending Wall Street into the green

US stocks ended with gains on a day when weaker-than-expected economic growth in China caused market unrest. The Nasdaq Composite was the biggest gainer.

US stock markets closed with gains as investors gauged the likelihood of the Federal Reserve (Fed) ending interest rate hikes in the face of a slowdown in the Chinese economy.

China’s gross domestic product grew at a slower pace than analysts expected: it posted year-on-year growth. 6.3% in the second quarter of the year, while a consensus of economists — compiled by Bloomberg — pointed to a 7.1% increase.

The data left investors worried that risks of lower-than-expected growth could be reflected in the global economy, but words from US Treasury Secretary Janet Yellen eased concerns. “A lot of countries are relying on strong Chinese growth to drive growth in their own countries, especially in Asia. And China’s slower growth could have some negative effects on the U.S. Growth has slowed, but our job market is very strong. I don’t want. I don’t expect a recession,” he told Bloomberg in an interview. said.

The benchmark S&P 500 index rose 0.39% 4,522.79 points, the industrial Dow Jones added 0.22% 34,585.35 The points and technical Nasdaq composite was up 0.93% 14,244.95 points.

In key moves, shares of Activision Blizzard rose more than 3% after Microsoft and British regulators disclosed the existence of “production” conversations. 69 billion dollars.

Ford, on the other hand, depreciated 5.94% after cutting the price of the electric model of the F-150.

Investors’ focus is now on “earnings season,” when corporate results make it possible to understand the impact on the business sector of the central bank’s interest rate cycle. Over the next few weeks, hundreds of companies will submit accounts, with Bank of America and Morgan Stanley turning this Tuesday.

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Companies in the S&P 500 are expected to see a 9% drop in second-quarter earnings, the worst three months since 2020, according to data compiled by Bloomberg.

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