Stock valuations in the US recovered late in Thursday’s trading session following a report by the Wall Street Journal indicating the Federal Reserve will take a more patient, cautious approach to lifting interest rates.
The Dow Jones slid some 800 points before shooting to session highs around 3:30 p.m. local time, just 30 minutes before the close of the trading day. The S&P was pulled up along with the Dow, and Nasdaq landed in the green for the day.
The positive sentiment spreading across trading desks is believed to have come from a Wall Street Journal report indicating that the Federal Reserve is considering signaling a “wait and see” approach to lifting interest rates after another small boost to rates in December, ZeroHedge reports.
Overall, the downward spiral lost some of its momentum. Just days earlier, on Tuesday, the Dow sunk 800 points amid a market-wide sell off. That trend continued for most of Thursday until the report about the Fed brought some life back to the markets.
- S&P 500 finished down four points or 0.15 percent.
- The Dow sustained a 79-point drop on the day, or 0.32 percent.
- The Nasdaq finished up 29 points, an increase of 0.42 percent.
The roller coaster ride downward on Thursday is believed to have been ignited by the arrest of Huawei’s chief financial officer in Canada, which was carried out at the request of US authorities.