May 20, 2022
Stock market chart

US stocks recovered from an early slump and closed generally higher Friday, marking positive investor sentiment both over the recent interest rate hike by the Federal Reserve and the progress of talks between President Biden and Xi Jinping.

Nvidia climbed by 6.8%, whilst Meta and Tesla rose by between 4.2% and 3.9% respectively, providing a boost the tech-heavy Nasdaq, which rose by 2%. The S&P 500 rose for the fourth day in a row, gaining a further 1.2%, whilst the The Dow Jones Industrial Average also increased by 0.8%.

The Fed recently announced the first increase in interest rates since 2018, and hinted at more to come as it looks to tackle the highest inflation rate in decades. The move had been expected, but an official announcement appears to have calmed investor nerves.

The markets are also believed to have benefitted from positive media coverage coming out of China regarding the talks between the US and Chinese leaders over the Ukraine crisis.

Biden and Xi spoke for just under two hours on a video call, after which state media reiterated China’s hopes for a peaceful resolution to the conflict. Russia’s invasion of its neighbor has been the major influence on the markets since it began on February 24th, and anything that points away from further escalation is sure to have a positive effect.