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 rallies
On Friday, Wall Street managed to gain ground in a broad-based ascend due to the fact that market participants were heartened by a report that the US government would try to temporarily conclude the longest government shutdown in the history of the United States.
All three key American stock indexes rallied, with the Dow as well as the Nasdaq eking out their fifth weekly leap in a row. However, the S&P 500 reported its first weekly loss of 2019.
The indexes rebounded from their maximums after US leader confirmed he along with lawmakers made up their mind to implement a three-week stop-gap spending plan with the aim of reopening the government.
In general, investor sentiment worsened for the last time in the face of revived fears having to do with the US government shutdown as well as the everlasting US-China tariff clash.
Among these uncertainties, the everlasting trade clash between China and America keeps worrying market participants.
An escalation of the US-China trade conflict would sharpen the global economic deceleration aready under way.
Fourth-quarter corporate revenue season is currently in high gear, with over 22% of S&P 500 businesses having posted. Eventually, of those, up to 72.3% have confounded analyst expectations.
Starbucks Corp beat Wall Street consensus too, posting better-than-expected quarterly sales. As for the coffee chain's equities, they rallied by 3.6%.
Consumer products company Colgate-Palmolive posted fourth-quarter revenue that turned out to be surprising, although added it actually expects revenue to head south this year. Its stock dived by 0.6%.
In addition to this, Intel Corp equities went down by nearly 5.5% reacting to the chipmaker's downbeat fourth-quarter sales as well as current-quarter forecasts.
The Dow Jones Industrial Average jumped by 0.75% being worth 24,737.2. Additionally, the S&P 500 rallied by up to 0.85% hitting 2,664.76.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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