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 stock indexes tack on by 1.3%-1.7%
On Monday, American stock indexes managed to ascend by more than 1%, notwithstanding the mixed statistics on the American labor market.
The previous week, the S&P 500 and Dow Jones inched down 1.2%, Nasdaq rallied 1.3%.
In April, the number of jobs in the American economy soared by about 164 thousand instead of the anticipated surge of 193 thousand. Meanwhile, unemployment dived below 4% for the first time since 2000 and accounted for 3.9% versus 4.1% in March. Market experts on average had hoped for a sag in unemployment to 4%.
The market also reacted to the US-China trade talks. Xinhua News Agency informed that China and the United States managed to come to a compromise on a number of economic and trade issues, although he didn’t specify what exactly matters are being negotiated.
According to some confidential documents that are at the disposal of Wall Street Journal and Bloomberg, the Americans insist that China should take measures to reduce the American trade deficit with China by about $200 billion by the end of 2020 versus the level of 2018 ($375 billion), and they also insist on lowering tariffs on all products to the same levels as those set in America.
On May 4 the Dow Jones Industrial Average rallied by 1.39% and accounted for 24262.51.
Standard & Poor's 500 rallied by 1.28%, being worth 2663.42.
Nasdaq Composite gained by 1.71%, hitting 7209.62.
The price of CBS securities tacked on by 9.1%. The media company posted a return to revenue in January-March and also better than anticipated earnings surge.
In addition to this equities of Celgene Corp inched up by 1.7% due to upbeat quarterly reporting of the manufacturer of medicines.
Paper Pandora Media managed to gain by 20%. In January-March Music Internet service recorded a smaller than anticipated net loss as well as increased 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!
WTI oil prices jumped up after Donald Trump’s 2 tweets
Today the US nonfarm payroll data will be reported that could cause fluctuations of the market.
WTI was at $20 per barrel just in the beginning of the day. Currently - above 25$.