high-yield, or junk-bond, market to 4% from 2.8% for 2023. Goldman Sachs this week raised its default forecast for the U.S. One worry is that high rates and tighter credit could lead to a wave of defaults. Fed Chairman Jerome Powell on Wednesday said he expected credit conditions to tightening further, doing some of the central bank’s work for it, in terms of bringing down inflation. Investors have been concerned about a potential credit crunch and its likely toll on the economy, after the failure earlier in March of Silicon Valley Bank and Signature Bank. The S&P 500 index SPX climbed 0.6% Friday and 1.4% for the week, while the Nasdaq Composite Index COMP closed up 0.3% for a 1.7% weekly gain. The Dow Jones Industrial Average DJIA rose about 132 points, or 0.4%, ending near 32,238, Friday, boosting its weekly gain to 1.2%, according to preliminary FactSet data. and European banking sectors remain in key focus. stocks ended a volatile week higher on Friday, a week that saw the Federal Reserve raise rates another 25 basis points and risks in the U.S. Dow ends 130 points higher Friday, stocks book weekly gains despite continued banking sector concerns
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May 2023
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