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 start higher
On Monday, American stock index futures started higher due to the fact that Mexico and the United States were getting closer to a trade pact. It contributed to optimism about the US economy after recent reassuring remarks from Fed Chair Jerome Powell.
Mexican and US trade talks are expected to result in a common position on the North American Free Trade Agreement. Ildefonso Guajardo, Mexican Economy Minister told that negotiations have kept making progress. Negotiations are scheduled to restart on Monday.
Market sentiment was also underpinned by the fact the US government put pressure on the EU to have trade talks speeded up.
The equities of car makers General Motors, Fiat Chrysler, and Ford gained about 0.30%- 0.41% in premarket trade. As for trade-sensitive industrials Boeing and Caterpillar, they inched up by respectively 0.7% and 0.9%.
On Friday, Fed Chair Powell told that the major financial institution’s gradual interest rate lifts appeared to be the best way to protect the economic revival, maintain firm job surge and also keep inflation under strict control.
It helped the S&P 500 to conclude at a record maximum on Friday, thus confirming the benchmark index's longest bull-market marathon.
As a matter of fact, ET, Dow e-minis managed to ascend by 0.54%. Additionally, S&P 500 e-minis tacked on by 0.39%, Nasdaq 100 e-minis soared by 0.5%.
Pfizer soared by 0.9% having told that its rare-heart disease drug managed to diminish the risk of death by nearly 30%, thus spurring the prospects of what could be potentially a billion-dollar-a-year medication.
Chipotle Mexican Grill slumped by 1.4% after Wedbush had its equities downgraded, referring to higher risks to the burrito chain's near-term same-store sales as well as margin forecasts.
Tesla Inc sank by 2.6%, which is the most impressive dive among Nasdaq 100 equities.
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!
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