
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
2022-02-28 • Updated
There’s nothing new in markets witnessing sharp crashes and volatility when geopolitical events happen. The initial and immediate reaction to these events is usually the most dramatic. The good news is that the impact is short-lived, lasting only for three months mainly. Although the escalation of the conflict between Russia and Ukraine may be devastating, the truth is that stocks can handle these geopolitical conflicts. We are now witnessing the first meaningful correction in the market after the strong performance in 2021. These types of geopolitical issues provide a good buying opportunity for long-term investors.
According to many analysts, we are in the midst of a structural bullish trend that is likely to continue over the next few years, and corrections will be part of that journey. History shows that 12 months after events like the current crisis, the market moves upwards. The markets' performance after the major geopolitical or historical events since World War II is much stronger than before. The markets even end the year in the green area most of the time.
However, this does not mean that Wall Street will not suffer from some turbulence and violent volatility in the short term.
From Thursday's trading session and its sharp crash, Wall Street's reversal has been wild. US stocks got rid of heavy losses and closed in the green. The major indices saw a massive comeback from sharp declines during the Friday session. The Dow Jones erased its heavy losses by more than 800 points. The Dow Jones Industrial Average jumped 815 points, or 2.5%, recording its best day since late 2020, after dropping 859 points last Thursday. S&P 500 also rose 1.9%, after falling more than 2.6%. Nasdaq Composite Index rose 1.1%.
Here is why the US stocks are resilient and flexible:
In the end, global markets will remain unstable over the coming weeks. While we may see some short-term volatility, these uncertainties provide strong investment opportunities if a recession doesn’t follow. Therefore, traders may try to take advantage of these corrections and swings.
Don't know how to trade stocks? Here are some simple steps.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
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