Sentiment on Wall Street is brightening – Citi shares are in demand

new York Easing fears of more drastic rate hikes by the US Federal Reserve are buoying Wall Street. In addition, encouraging economic data and corporate balance sheets lifted sentiment. The US standard index Dow Jones and the broad S&P 500 rose on Friday by almost two percent to 31,211 and 3853 points respectively. The tech-heavy Nasdaq lagged, up 1.4 percent.

Investors reacted with relief to the statements by two leading US central bankers, who advocated a rate hike of 0.75 percentage points in two weeks. They had feared a full percentage point hike after Wednesday’s surprisingly high US inflation data. “The debate about a 100 basis point rate hike has the market in suspense,” said Peter Cardillo, chief economist at investment firm Spartan.

Stockbrokers also rated the surprisingly strong increase in US retail sales and improved consumer sentiment as positive. US consumer spending is seen as the mainstay of the world’s largest economy.