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When Wall Street closed Wednesday night, the Dow Jones index had climbed 2.5%. This is the biggest increase in the index since 26 March.
Dow now has 25,257 points.
The recovery comes after the head of the central bank, Jerome Powell, said earlier that the interest rate in the United States is now almost neutral. It is understood that Powell says that he will slow down the interest rate hike.
True recovery
"Interest rates remain low in a historical context and are well below the level of many valuations indicating what is neutral for the economy. accelerate or slow down economic growth, said Powell, according to Marketwatch.
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Previously, Powell's speech at the New York Economic Club had been presented by several American media as its most important to date.
The statements prompted the US stock market to stop and within hours, a relatively normal trading day has become a real stimulus. In addition to the strong recovery of Dow Jones, the Nasdaq Composite rose by 2.95% and the S & P 500 by 2.30%.
Turbulent harvest
The Dow Jones and the S & P 500 both have a positive outlook for November, a month of stock market turbulence this fall.
The fall in the global stock market has been linked to interest rates in the United States. Rising interest rates and rising borrowing costs can help curb global growth and corporate income, even though the loan remains very cheap.
In addition, the international trade dispute between the United States and China, in particular, has been a source of trouble for the markets.
At the same time, Europe's economic growth has slowed down and the International Monetary Fund (IMF) has revised its forecasts for global economic growth.
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