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?
Energy and tech stocks back Wall Street
On Tuesday, Wall Street's key indexes went up because Apple as well as chipmakers spurred tech stocks, while higher crude prices underpinned energy companies.
The profits showed up after two losing sessions, provoked by worries of decelerating global economic surge as well as an inversion of the American Treasury gain curve for the first time since 2007, which followed the Fed’s stunning about-face on interest rate lifts.
The tech sector managed to ascend by 0.50%, backed by profits in Apple Inc as well as chip makers, and the Philadelphia chip index also headed north by 0.50%.
Besides this, Apple rallied by 0.84%, a day after the iPhone maker uncovered its video streaming service, an online gaming arcade, and a credit card.
The benchmark 10-year Treasury gains dived from 15-month minimums and a monitored part of the gain curve happened to be less inverted.
In fact, stabilizing gains helped financials to head north by 0.23% and the sector was braced for snapping a five-day losing marathon, with the S&P banking sector adding 0.29%.
ET, the Dow Jones Industrial Average managed to ascend by 0.37% hitting 25,610.26. As for the S&P 500, it rallied by 0.48% reaching 2,811.88. The Nasdaq Composite jumped by 0.56% showing 7,679.99.
As for 10 of the 11 key S&P sectors, they surged, led by energy's 1.23% leap because crude headed north on OPEC supply cuts as well as hopes for lower American inventories.
Traders also closely watched US-China trade negotiations, with American statesmen going to Beijing for another round of high-level talks, expected to start on Thursday.
Financial markets also neglected downbeat consumer confidence numbers for March as well as housing data, which revealed that American homebuilding declined more than anticipated in February.
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!
RBA Rate Statement is released on Tuesday at 07:30 MT time.
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.