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.

Valeria Bednarik FXStreet

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.

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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