Stocks closed higher on Wall Street on Monday, after seven weeks of declines that nearly ended what is known as a
bull market
that began in March 2020.
Banks and technology companies made some of the biggest gains
.
Bond yields also increased.
Financial markets have grappled with people's concerns about inflation and even a possible recession, leading major stock indices to post significant declines in recent weeks.
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The S&P 500 index has snapped its worst weekly losing streak since the
dot.com
speculative bubble burst in 2001.
The Dow Jones Industrial Average records its worst drop since the start of the pandemic
May 18, 202200:23
It's called a bear market, or
bear market
,
when an index like the S&P 500, the Dow Jones Industrial Average, or even an individual stock has fallen 20% or more from a recent high over an extended period of time.
While a rising market, or
bull market,
In English, it is when a particular stock or index has posted more than 20% gains from a loss of at least 20%.
The S&P 500 is currently 17.5% below its all-time high, while the Dow Jones is down 13.7%.
The Nasdaq is already in bear market territory, down 28.8% from its recent high.
American flags hang outside the New York Stock Exchange. Frank Franklin II / AP
Biden says it's "not impossible" to avoid a recession
President Joe Biden warned on Monday that the fight against inflation "will take some time" and that the prices of goods and services, and in particular gasoline, will remain high for some time.
Speaking from Tokyo, Japan, during the signing of a trade agreement with 12 Indo-Pacific nations, Biden assured that a recession in the United States "is not inevitable."
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The president's remarks come at a time when his approval ratings are at one of the lowest points of his presidency, according to the latest polls, and inflation is at its highest point in 40 years.
They plan an increase in Social Security payments to retirees in 2023 due to inflation
May 17, 202200:47
Sentiment in financial markets appears to have improved following Biden's announcement that he was considering lowering tariffs on some imported goods from China.
“I am considering it,” Biden said from Tokyo.
“We did not impose any of those tariffs.
They were imposed by the last administration and are under consideration, ”he added, referring to the previous administration of Republican Donald Trump.
The end of last Friday's session marked
the Dow Jones's first eight-week losing streak since 1923
.
The S&P 500 also capped seven straight weeks of losses.