Wall Street clinches strong gains after initial slump

  • All of the three major indexes added over 1% each after a three-digit pre-opening slump.
  • Tech-related equities led the way higher, disappointing retail sales helped.

Wall Street closed the day with strong gains, with indexes at their highest in a month, reverting a pre-opening huge slump. The DJIA shed roughly 470 points following the release of US inflation data, which came above market's expectations, reviving concerns of a faster pace in rate hikes, but closed the day at 24,893.49 up 253 points. The Nasdaq Composite and the S&P also advanced, up 1.86% and 1.34% respectively to 7,143.61 and 2,698.63.

Investors shrugged off concerns about higher inflation as retail sales disappointed, while tech-related shares soared, in spite of market news, with Facebook, Amazon and Apple posting strong gains. US yields in the meantime, reached fresh 4-year highs, with the 10-year note yield ending the day at 2.91% and the 30-year note one closing at 3.18%.

The DJIA hovers around 24,900 after the close, up for a fourth consecutive day and poised to extend its advance, as in the daily chart, the index moved further above a bullish 100 DMA and the 61.8% retracement of last week's slump, while hovering around last Thursday's high of 24,954, the immediate resistance with gains above the level favoring a continued advance toward a complete retracement to 25,512 during the following sessions. 

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