After Wild Ride, Dow Closes With 99-Point Gain

Other major indexes also bounced back from huge losses earlier in the day
By Newser Editors and Wire Services
Posted Jan 24, 2022 3:48 PM CST
Major Indexes Bounce Back From Early Plunge
A trader talks to a pedestrian outside the New York Stock exchange last week.   (AP Photo/Mary Altaffer, file)

(Newser) – Stocks recovered from big early losses Monday as investors jumped in before the closing bell. The Dow Jones Industrial Average swung 1,217 points and closed up 0.3% after dropping 1,000 points as investors anticipated inflation-fighting measures from the Federal Reserve and fretted over possible conflict between Russia and Ukraine, the AP reports. Other major indexes also closed higher after large drops early on. The S&P 500 rose 12.19 points, or 0.3%, to 4,410.13. The Dow Jones Industrial Average rose 99.13 points, to 34,364.50. The Nasdaq rose 86.21 points, or 0.6%, to 13,855.13.

The market is waiting to hear from Federal Reserve policymakers after their latest meeting ends Wednesday. Some economists have expressed concern that the Fed is already moving too late to combat high inflation. Other economists say they worry that the Fed may act too aggressively. They argue that numerous rate hikes would risk causing a recession and wouldn’t slow inflation in any case. In this view, high prices mostly reflect snarled supply chains that the Fed’s rate hikes are powerless to cure. The Fed’s short-term rate has been pegged near zero since the pandemic hit the global economy in 2020 and that has fueled borrowing and spending by consumers and businesses.

But rising prices at supermarkets, car lots, and gas stations are raising concerns that consumers will pare back spending to limit the pressure on their budgets. Companies have warned that supply-chain problems and higher raw materials costs could crimp their profits. The Fed has kept downward pressure on longer-term interest rates by buying trillions of dollars worth of government and corporate bonds, but those emergency purchases are scheduled to end in March. Nudging rates higher is intended to help slow economic growth and the rate of inflation. Investors are also keeping an eye on developments in Ukraine. Tensions soared Monday between Russia and the West over concerns that Moscow is planning to invade Ukraine, with NATO outlining potential troop and ship deployments.

(Read more stock market stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X