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Wall Street closed the volatile week with gains

Last week has been pretty uneasy for Wall Street. It started with a significant risk aversion because of the crisis of Chinese real estate firm Evergrande. However, the market sentiment shifted after the monthly meeting of the Federal Reserve, and the New York Stock Exchange closed Friday with gains.

The Dow Jones accumulated a gain of 0.6% in the last five days. Meanwhile, the selective S&P 500 added 0.5%, and the Nasdaq increased by 0.02%.

Evergrande injected volatility into financial markets globally on Monday. This was due to the possibility of a suspension of payments on its debt. A Wells Fargo economists stated that the firm is very important for the Chinese real estate sector and its bankruptcy could affect global forecasts.

Stock markets have calmed on Friday. However, fears for Evergrande, the slowing economy, and ongoing supply chain issues are still there.

The Federal Reserve indicated after its monthly meeting last week that the bank would begin tapering by the end of 2021. As for the rising rates, it will probably begin by the end of the following year.

Charles Schwab analysts noted that a long-term economic outlook is favorable. However, global stock markets are concerned about short-term problems now. Besides, it is clear that the Fed is moving towards tapering. Still, the pace of it is uncertain.

On the other hand, companies will soon present their quarterly results. Analysts expect it to be complicated after the data was released by Nike, one of the first companies on the calendar. The multinational clothing company delivered a worse than expected turnover. Also, it added that supply chain problems would affect the business in the next few months.

Meanwhile, Mark Hackett, chief of investment research at Nationwide, stated that stock markets keep reflecting a push and pull between bulls and bears. The market recovery showed that the mentality of buy-the-dip persists.

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