Goldman Sachs named five reasons for the growth of the stock market this week

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Analyst Chris Hussey of Goldman Sachs named five reasons why the stock market   ended the week with the highest gain in two years. It is reported by CNBC.

Major U.S. stock indices posted their best week since November 2020. The Dow Jones Industrial Average is up 5.5% for the week, the S&P 500 is up 6.2% and the NASDAQ Composite is up 8.2%.

Hussey noted that the world has learned to live with COVID-19 , so recent reports of new outbreaks of the virus in China and Europe did not scare investors.

The second reason for the growth, Chriss Hussey attributed the plan to raise rates by the US Federal Reserve System (FRS). Despite the fact that fears of an increase led to a fall, one must take into account that inflation continues to rise. In this regard, investors may be more comfortable with such measures, said Chriss Hussey.

The next reason is the dynamics of oil prices . This week, prices fell to $100 a barrel after rising above $130 a barrel early last week. Hussey said investors may take the sharp reversal as a reminder that there is a counter-inflation action on commodities.

Chriss Hussey named the growth of key US economic indicators as the fourth reason, and the possible weakening of geopolitical risks as the fifth.

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The stock market is a place where stocks, bonds, currencies and other assets are traded. The concept of the market affects not only the function of transferring securities, but also other transactions with them, such as issuance and taxation. In addition, it allows you to set fair pricing. More