Dow bounces higher as Fed chief Jerome Powell signals patience on rate hikes
U.S. stocks soared Friday, helped by a strong jobs report, a day after fears about Chinas slowing economy sent shock waves through markets worldwide.
Federal Reserve Chairman Jerome Powell gave investors another boost by noting that the central bank would watch to see how the economy evolves, suggesting it would ease the rate of interest rate hikes if the economy falters.
The first week of 2019 has been riddled with the same volatility that plagued Wall Street throughout December, fueled by a partial government shutdown and concerns that Chinas status as an engine of the global economy is likely in jeopardy. After another two days of wild swings and a confounding jobs report, all major indices bounced back, boosted by a healthy December jobs report and confirmation of upcoming trade negotiations with China. The Dow Jones industrial average and Standard & Poors 500-stock index were both up roughly 3.6 percent in midday trading, and the tech-heavy Nasdaq was up 4.5 percent.
Throughout his time in office, President Trump has frequently pointed to the markets as proof of his success. But as the markets have crumbled, he has foisted blame on the Federal Reserve and on his opponents. In tweets Friday morning, the President attributed the volatility on Wall Street to the Democrats' takeover of the House but insisted things will settle down.
https://www.washingtonpost.com/business/2019/01/04/booming-jobs-report-helps-us-markets-rebound-after-thursdays-steep-losses/?utm_term=.e1a14ae6af16&wpisrc=al_news__alert-economy--alert-national&wpmk=1