(ThePatriotWire)- According to Federal Reserve Chair Jerome Powell, 2023 should see significant declines in inflation.
His remarks fueled investor expectations for less interventionist monetary policy were dashed following an upbeat U.S. jobs report last Friday. In reference to the January nonfarm payrolls report, Powell said at the Economic Club of Washington that he didn’t expect it to be this strong, but it shows why he thinks this process will take quite a bit of time.
According to a report, Powell’s remarks caused significant volatility in the major indexes on Wall Street, and analysts predict it won’t go away anytime soon.
The top 11 S&P 500 sectors performed differently, but technology firms were among the top gainers.
Following the American airplane manufacturer’s confirmation that it anticipates eliminating about 2,000 white-collar jobs, Boeing Inc. became one of the top gainers on the Dow Jones Industrial Average.
The S&P 500 increased by 52.99 points, or 1.29%, to close at 4,164.07 points, while the Nasdaq Compositroseed by 225.16 points, or 1.89%, to close at 12,112.61. To reach 34,158.01, the Dow Jones Industrial Average increased by 266.99 points or 0.79%.
Views that rates would remain higher for a more extended period were a drag on U.S. stock indexes last Monday, but each of the three major averages was positive for 2023, with the Nasdaq adding over 15% thanks to a rebound in the battered mega-cap growth stocks.
Reports show that half of the S&P 500 companies have released their quarterly earnings, and 69.1% of them outperformed forecasts, but analysts anticipate a 3.1% decline in fourth-quarter earnings.
As the struggling retailer attempts to avoid bankruptcy, Bed Bath & Beyond Inc (BBBY.O) reported that it might raise an additional $800 million over the next ten months in addition to the approximately $225 million it raised in an equity offering.
According to analysts, BBBY.O may only have a few quarters with the new funding to turn around its failing company, and a deteriorating economy would lessen the likelihood of a successful turnaround.