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?
Wall Street concludes up due to economic data
On Thursday, key Wall Street indices closed up underpinned by the financial sector because market participants shifted attention to quite upbeat economic data, while worries about trading receded. At the same time, the Nasdaq index concluded at a record maximum for the third consecutive trading session.
On Thursday, White House Chief Economic Adviser Larry Kadlow told that Donald Trump is going to meet with French President Emmanuel Macron as well as Canadian Prime Minister Justin Trudeau this week at the G7 summit.
However, Kadlow stressed that Trump isn’t going to give up his strict stance on trade, although his comments seem to have reassured traders.
The previous week Trump rolled out tariffs at a rate of 25% on steel as well as 10% on aluminum from Canada, Mexico and the European Union. By the way, Mexico responded by imposing duties on US products - from whiskey to pork and steel.
The Dow Jones concluded the trading marathon +1.4% hitting 25,146.39. The S&P 500 index managed to grow by 0.86% coming up with a reading of 2.772.35. The Nasdaq Composite index soared by 0.67% demonstrating a reading of 7,689.24.
The revenue of the 10-year American Treasury bonds approached a two-week maximum after data indicating a sudden slump in the American trade deficit to a low of seven months in April that strengthened confidence in accelerating GDP surge in the second quarter.
The financial sector of S&P tacked on by about 1.8%, thus becoming the key driver of surge in the S&P 500 index because of the surge of bank securities as well as revenue of government bonds.
Additionally, Facebook shares dived 0.8% after the company officially confirmed that it’s broadly cooperating with up to four Chinese companies in terms of exchanging user data.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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