Global stock markets recovered after the S&P 500 cut losses, which briefly shifted it to a bear market, and the dollar rose on Friday as investors’ concerns about tightening the Federal Reserve’s policy to curb inflation sparked fears of a recession.

Earlier, stocks rose in Europe and Asia after China cut key lending targets to support its weakening economy, which initially helped drive growth on Wall Street.

China has lowered its initial rate on five-year loans, affecting mortgage prices, by 15 basis points as a result of a decline that was sharper than expected as authorities sought to mitigate the effects of the economic downturn.

While the last day of the rally stopped the S&P 500 from confirming the bear market, the gloom on Wall Street led to a drop in benchmarks for the seventh week in a row, an event that has occurred only five times since 1928, according to the S&P Dow Jones Indeces.

How long the fall in stocks will last will depend on when inflation breaks down, said Peter Ace, president of the Chase Investment Council in Charlottesville, Virginia.

“What really baffled investors this week, including me, is that you have companies that usually do well in economic softness, do horribly,” Ace said, referring to poor earnings results in Walmart Inc (WMT.N) and Target Corp. (TGT.N).

The S&P 500 (.SPX) closed 0.01% after falling 2.27% at one point or below, confirming the bear market – a 20% drop from a record high on January 3.

The Dow Jones Industrial Average (.DJI) was up 0.03% and the Nasdaq Composite (.IXIC), which is already in bearish territory, was down 0.3%.

Stock valuations should go down, and the expected return on investment, the discount rate, should go up, said Stephen Out, chief investment officer at Federated Hermes.

“The market is starting to digest the idea that this could be a new world where the discount rate on risky assets is no longer zero,” Aut said.

“You see, all these different areas of the market are turning out at the same time, and it has been very worrying for investors,” he added.

MSCI shares in 47 countries (.MIWD00000PUS) closed 0.37%, but still fell for the seventh week in a row, the longest losing streak since the index was launched in 1990.

Earlier in Europe, the pan-regional index STOXX 600 (.STOXX) rose by 0.73%.

US Treasury yields fell for the third straight session due to concerns about growth prospects. Yields on benchmark 10-year bonds fell 6.5 basis points to 2.790%.

Futures on Fed funds have been firmer, suggesting that the U.S. rate market has strayed slightly from some of its more extreme estimates of rate hikes. At the end of the following year, the Fed’s rate on the market was 2.783% compared to the current level of 0.83%. Two weeks ago it was as much as 2.9%.

The dollar’s ​​earnings for the day were not enough to erase the sharp losses earlier this week that diverted the dollar from a five-year high against the single currency due to unrest that its months-long rally may have been excessive.

In recent months, the dollar has been backed by security flight amid a crackdown on markets due to fears of rising inflation, the Fed’s hawk and the war in Ukraine.

The dollar index rose 0.146%, the euro fell 0.3% to $ 1.0554. The Japanese yen weakened 0.09% to 127.92 per dollar.

Eurozone bond yields rose after two days of significant declines as risk sentiment improved after the rate cut in China.

Germany’s 10-year government bond yields rose 0.1 basis points to 0.9450%, below last week’s eight-year high of 1.189%.

Markets are estimating 38 basis points from the European Central Bank before its July meeting. This suggests that an increase of 25 basis points is fully estimated, and markets see an approximately 50/50 probability of additional movement at 25 basis points.

Oil prices have been steady, with little change during the week as the EU’s planned ban on Russian oil counterbalanced fears that a slowdown in economic growth would hurt demand.

US oil futures rose $ 1.02 to $ 113.23 and Brent rose 51 cents to $ 112.55 a barrel.

Gold rose, heading for the first week of growth in five weeks due to constant worries about economic growth and the decline of the dollar for the week.

US gold futures rose 0.1% to $ 1,842.10.

Bitcoin fell 3.36% to $ 29,272.33.

World stocks fell by $ 13 trillion

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