US stocks fell deep and rebounded, gaining over 200 points in early trade, escaping a bear market

US shares climbed more than 200 points on 13th.Reuters

US stocks finally bounced back on the last day of the week after falling for six straight sessions with the Dow Jones Industrials.indexIt initially rose more than 200 points, and the S&P 500 index rose nearly 1.1%, temporarily avoiding a fall.bear marketluck. The Nasdaq Composite, which has fallen into a bear market, also recovered 1.6%.

The Dow Jones Industrial Average and the S&P 500 attempted a rebound on Wednesday, but were unable to continue closing. As of 12th, the S&P 500 was down nearly 18% from its January high of this year, 20% away from falling into a bear market. The % drop is just one step away. The Nasdaq Composite is down 29% from its previous high and remains in a bear market.

Willer, a Citigroup strategist, said the previous rally in US stocks was clearly deviating from longer-term trends and showing a bubble. This year’s decline is slowly returning US stocks to normal prices. Other analysts have previously warned that recent rebounds are often “runaway waves,” and investors are mostly unwilling to take dips, but take the opportunity to liquidate the stock.

Among the key leaders, shares of Apple (AAPL) had already closed in a bear market on Thursday, a path that has wiped out all gains in many sectors during the coronavirus pandemic. Investors worried about rising inflation.irrigatedThe (Fed)’s determination to raise interest rates ultimately led to the U.S.

Fed Chairman Powell said in an interview on the 12th that the Fed cannot guarantee that a “soft landing” will solve the inflation crisis. Analysts still expect the US to avoid two consecutive quarters of negative economic growth and enter a formal recession this year, but full-year economic growth is likely to be negative, given the inflation rate that hit 8 percent in the past. It’s been two months since the Fed cannot continue to use stimulus monetary policy in the market.

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