On Wednesday, American stock index futures headed south because dismal data out of China affected market sentiment, while traders waited for more developments related to the US-China trade conflict…
Dow gets back to positive territory
On Thursday, the Dow got back to positive territory for the year, offsetting losses from yesterday’s rout, led by soaring tech equities because bargain-hunting traders rushed to beaten-up equities on the back of reassuring earnings.
As a matter of fact, the Dow Jones Industrial Average leapt by nearly 1.63%. As for the S&P 500, it managed to gain by 1.86%. At the same time, the Nasdaq Composite surged by 2.95%. Firm profits for the Dow as well as Nasdaq saw both indexes dodged correction territory.
Well, the major averages managed to dodge correction territory due to the fact market participants considered the rout from a day earlier to be a buying opportunity.
On Wednesday, Microsoft reported profits after the settlement that handily surpassed analyst expectations on both the top as well as bottom lines, thus sending its equities up by 6%. As for Twitter, it managed to surge over 15% having surpassed consensus profit forecasts.
In addition to this, Tesla demonstrated a striking third-quarter gain, although some on Wall Street tamed upbeat mood, questioning whether it’s as good as it gets for the well-known electric car maker.
Tesla's exposure to China levies on imported components as well as its offering of lower-priced cars would probably have margins compressed in the fourth quarter.
Chip producer Advanced Micro Devices tamed optimism on profits after it guided fourth-quarter gains below consensus forecasts. Its equities headed south by nearly 15%.
Chipmakers generally rallied, with top performers including, Nvidia, Micron Technolgoy and Intel. Besides this, the SPDR S&P Semiconductor headed north by over 2%, compensating some losses from yesterday, when the sector faced its worst dive since November 2018.
By the way, Xilinx, Twitter as well as International Paper turned out to be the S&P 500 top performers for the trading session.
On Wednesday, Italian stocks led losses in the European Union right after the country's deputy prime minister told that Rome considers breaking EU fiscal rules, thus masking early revenue powered by optimism around the US-China trade conflict…
On Tuesday, another US-China tariff conflict escalation put pressure on Asian stocks, although remarks from American leader that he expects trade talks to be successful backed market sentiment…
On Monday, gold declined notwithstanding a lower American currency because data underpinned hopes for a Fed interest rate lift…
On Friday, European stock indices fluctuated at the beginning of the trading session…
The Reserve Bank of New Zealand will hold a meeting at 00:00 MT time on August 9.