The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
American equities inch up as traders neglect dismal bank outcomes
On Tuesday, American equities went up due to the fact Netflix drove a leap in technology as well as internet shares and UnitedHealth reported firm outcomes, while hopes of more stimulus for China's decelerating economy encouraged purchasing risky assets.
Netflix Inc equities went up by 7% after the video streaming pioneer told it was ramping up prices for its American subscribers. As for other high-profile shares, including Microsoft Corp, Apple, Amazon.com, they tacked on after the announcement.
Meanwhile, the communication services sector SPLRCL, including Facebook and Netflix, headed north by 1.64%, while technology shares SPLRCT rallied by 1.53%.
Market participants are actually expecting earnings to be lower this year.
Downbeat earnings reports from big American financial institutions as well as Republican Senator Chuck Grassley's remarks on the progress in US-China trade negotiations had affected market sentiment early in the day.
The largest American financial institution by assets, JPMorgan Chase & Co missed quarterly revenue estimates because of a dive in bond trading profit, while Wells Fargo & Co told that its loan book contracted and quarterly revenue went down in all of its key businesses.
Nevertheless, JPMorgan shares went up by 0.7%, while Wells Fargo tumbled by 1.4%.
The S&P financial index SPSY rallied too, reporting an 0.6% leap.
Market experts expect S&P 500 gains to have soared by 14% in the fourth quarter, which appears to be much lower than the 20.1% jump estimate in October.
The Dow Jones Industrial Average tacked on by 0.56% being worth 24,043.65. The S&P 500 surged by 0.94% reaching 2,607.00, while the Nasdaq Composite inched up by 1.56% showing 7,013.75.
Health insurer UnitedHealth Group went up by 2.7%, thus becoming the number one performer on the Dow having posted a better-than-anticipated quarterly revenue.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
Will coronavirus continue keeping the markets in fear? What releases should we wait for? Find out in the news!
Coronavirus risks continue spreading. What the next week has for us?
With all the worries and uncertainties coming from the coronavirus news, let’s take a look at the opinion of the US billionaires
Coronavirus got out of China to terrorize the rest of the world. How to trade that?