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Dow Jones is close to its best monthly performance since January 1976

Sherif Adel (Washington)

US stocks rose, during trading on Friday, to end the week strongly, despite the poor results of most major technology companies, and the Dow Jones Industrial Average recorded the fourth consecutive week of gains, for the first time since November of last year.
During Friday’s trading, the Dow Jones Industrial Average rose more than eight hundred points, representing 2.6% of its value, close to recording its best monthly performance since January of 1976. On the same day, the “S&P 500” index rose by about 2.5%, While the Nasdaq gained 2.9%.
The announcement of poor business results during the third quarter of the year from some major technology companies, pressured the indicators on some days of the week, as the “Facebook” share lost more than a quarter of its value, and “Alphabet”, the parent company of the famous search engine, lost more than a quarter of its value. Google, more than ten percent of its value, after announcing the results of their business.
In the same context, the “Amazon” stock lost more than twenty percent of its value, and the “Microsoft” stock lost more than ten percent of its value. However, the three major indices managed to achieve significant weekly gains.
Led by the “Apple” stock, which alone constitutes more than 7% of the value of the “S&P 500” index, which rose during trading on Friday only by more than 7.5%, the index rose by 3.9%, and the “Nasdaq” index rose by 2.2, during transactions of the week. As for the “Dow Jones” index, the most famous in the world, its weekly gains amounted to 5.7%.
The hopes of US stock and bond investors were revived by data released throughout the week, which indicated that the US inflation rate may have begun to decline, which could lead to a softening of the Fed’s tone of keeping interest rates at their restrictive levels.
Investors are eagerly awaiting the press conference that will follow the Fed board meeting next Wednesday, in which Jerome Powell, the bank’s president, will announce their decision to raise interest rates, which most forecasts indicate will be 75 basis points.
With expectations that the interest rate on the bank’s funds will move to a range of 3.75% – 4%, after it was close to zero at the beginning of this year, investors are looking forward to what Powell will say, after announcing his decision to reporters.

focal point
A number of “Federal” members expected that the current period would represent the pivotal point of the Pivot, in which the Bank reverses its monetary policies, so that the largest economy in the world does not enter a recession. But Lawrence Summers, Secretary of the Treasury under former US President Bill Clinton, said in an interview with CNN News two days ago, that “Americans have no experience in getting out of high inflation until after entering a recession.”

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