The S&P 500 stock index, popularly regarded as one of the barometers of the U.S. economy, posted a notable rise on Thursday, January 26, which generated an optimistic mood in United States financial markets and on Wall Street.
According to data compiled by analysts and media outlets, the S&P 500 rose at least 0.5% this Thursday, after facing pressures that indicated the economy’s slowdown was intensifying, particularly for technology companies.
The reason for this uptick in the S&P 500 appears to be the release of data showing that the U.S. economy grew at an annual rate of 2.9% in the fourth quarter of 2022.
The news demonstrated that the country remains resilient despite the high inflation and the elevated interest rates imposed by the U.S. Federal Reserve.
However, despite these data, most economists believe that fears of a recession this year have not faded. A number of interest-rate increases by the Federal Reserve are still anticipated for this year, aimed at bringing inflation down.
Inflation levels, indeed, have fallen compared to the peaks reached in the summer of 2022, when inflation hit its highest point in 40 years.
So far, the Federal Reserve has raised interest rates by about 4.25% since March of last year, and economists consider that the effects of these measures may be felt soon.
According to a CNBC network report, markets expect another interest-rate hike of between 0.25% and 0.50% in the coming days.
