Market Snapshot: Dow jumps more than 500 points as fresh data show a rise in U.S. consumer confidence

by | Dec 21, 2022 | Stock Market

U.S. stocks were trading sharply higher Wednesday morning, with the Dow Jones Industrial Average jumping more than 500 points, as investors digest fresh data showing a rise in U.S. consumer confidence. Stocks are extending gains after Wall Street snapped a losing streak as the long Christmas weekend nears. How are stocks trading?
The Dow Jones Industrial Average
jumped 531 points, or 1.6%, to 33,381.

The S&P 500
rose almost 60 points, or 1.6%, to 3,881.

The Nasdaq Composite
gained nearly 180 points, or 1.7%, to trade at 10,727.

On Tuesday, the S&P 500, Dow industrials, and Nasdaq Composite posted modest gains, snapping a four-day string of losses.

What’s driving markets? Stocks were trading sharply higher Wednesday at midday as investors digested fresh data showing a rise in consumer confidence. The Conference Board said Wednesday that U.S. consumer confidence “bounced back in December,” after back-to-back monthly drops. Its consumer confidence index jumped to an eight-month high of 108.3 in December, exceeding forecasts from economists polled by The Wall Street Journal. Read: Consumer confidence hits 8-month high as worries about inflation and recession fade But Matt Lloyd, chief investment strategist at Advisors Asset Management, expressed caution over the stock market’s sharp move higher Wednesday. “These moves that you see today are just head fakes,” Lloyd said in a phone interview. “There’s less volume” in trading heading into the end of the year, leading to exaggerated moves in the market, he said. “The problem is the economy really is fundamentally much weaker,” and earnings may have to drop “a lot more,” said Lloyd, adding that he’s expecting a recession in 2023. Meanwhile, markets have brushed aside a surprise monetary shift by the Bank of Japan on Tuesday, when it raised the yield at which it allows bond to trade. The move has been viewed as a first step toward the bank ending its era of ultra easy monetary policy, though BOJ Gov. Haruhiko Kuroda described the measure as neither a tightening nor a move toward the exit. Read: Why the Bank of Japan’s surprise policy twist rattled global financial markets “The BOJ announcement was a late-year surprise, but while it echoed the hawkish ECB (and that’s why stoc …

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