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 futures rally on hopes of fresh trade negotiations
On Thursday, American futures jumped because trade concerns softened after China told it was ready for another round of negotiations with America. As a result, technology equities went up.
Even as the American government is preparing to impose levies on $200 billion worth of China’s products, on Wednesday, the currency presidential administration welcomed Chinese officials to resume negotiations, although it‘s quite unclear when these negotiations could take place.
Equities of trade-sensitive Caterpillar as well as Boeing rallied up to 0.4%.
The equities of US-listed Chinese companies rallied too. Alibaba, Baidu, and JD.com headed north by nearly 2%.
Apple ascended by 0.8% following Wednesday’s 1.2% sink when it uncovered its largest-ever iPhone, although made light changes to its offerings as anticipated.
ET, Dow e-minis tacked on by up to 0.24%. Additionally, S&P 500 e-minis managed to gain nearly 0.22%, while Nasdaq 100 e-minis surged by 0.39%.
In August, American consumer prices went up by 0.3% following July’s 0.2% leap, as the Labor Department informed. ET actually points to strengthening inflation that will keep the key US bank on track to gradually lift interest rates.
Twitter surged by up to 1.4%, while Alphabet acquired 0.5%. Their equities, along with four other key web as well as Internet businesses, including Apple, headed south on Wednesday after they were urged to have their consumer data privacy practices detailed to a US Senate panel.
In addition to this, Qualcomm managed to tack on by about 2.5% after the American chipmaker told it would buy back nearly $16 billion of its stock as part of a previously uncovered $30 billion repurchase initiative.
Besides this, chip manufacturers also rebounded following Wednesday’s dive. As a matter of fact, Intel tacked on by up to 0.87% and Micron added approximately 1.3%.
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!
Moody’s downgraded the country to ‘junk’ status on Friday.
The US economy has been hit hard by the coronavirus outbreak.
The United States will publish ISM manufacturing PMI on April 1, at 17:00 MT time.