The major benchmark indices registered solid gains on Tuesday, posting their best day since March 16. The Nasdaq Composite jumped 2.2%, while the Dow Jones Industrial Average rose 499.51 points or 1.5%, and the S&P 500 gained 1.6%, with 10 out of 11 sectors ending the session in the green.
However, the International Monetary Fund (IMF) reduced its economic growth forecasts and warned of higher inflation. The organization lowered its global economic growth forecast by nearly a full percentage point, citing Russia’s invasion of Ukraine and the rising inflation in several countries. And according to St. Louis Federal Reserve Bank President James Bullard, U.S. inflation is “far too high.” He is encouraging the increase of interest rates to 3.5% by the end of the year to slow the inflation readings.
