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When the New York Stock Exchange closed Thursday after a trading day characterized by uncertain and changing sentiment, the top three indices looked like this:
- The S&P 500 aggregate index rose 1.1 percent
- The Dow industrial index rose 1.6 percent
- The technology-dominated Nasdaq Index was up 0.9 percent.
The rebound comes after significant price declines on Wall Street on both Tuesday and Wednesday. European stock markets closed lower less, with the Oslo Stock Exchange down 2.7 percent.
It started with the fall
The trading day in the United States did not start well, with rates falling about 1 percent. This was due to still disastrous new job numbers from the United States. Last week, another three million people signed up for unemployment. In total, the number increased to 36.5 million after the crown crisis hit the American economy.
But, as chief strategist Matt Maley of manager Miller Tabak tells Bloomberg:
– In recent months, the courses have gone up every time, so people do not sell so aggressively.
The increasingly sour relationship between the United States and China is causing concern among investors who fear a new trade war between the two countries. United States President Donald Trump also did not help improve mood when he was interviewed by Fox Business on Thursday. Here, the President claimed that he and his Chinese counterpart Xi Jinping actually have a very good relationship, but that:
“Right now, I don’t want to talk to him,” said Trump.
In the interview, the president reiterated that he is very disappointed with China’s handling of the coronavirus outbreak, but only hinted at any reaction:
– There are many things we can do. We can do things. We can cut the whole relationship.
Industry beat technology
But neither the unemployment figures echoed in the 1930s, nor Trump’s cryptic saber rattling could keep the markets down. On Thursday, however, a pattern is broken as the Dow Industrial Index outperformed the Nasdaq.
Both financial institutions and oil producers contributed to the Dow boom. The latter category is being lifted by rising oil prices, which are above five percent on Thursday night.
Banking giant Wells Fargo led the way among financial institutions, increasing nearly seven percent.
In recent months, it has been the other way around, and so far the tech-dominated Nasdaq index has outperformed the stock market. This is even weak in the lead for the year as he took over the entire crown accident that started in February.
Think “macro noise” is taking over
Diane Jaffee, TCW’s senior portfolio manager, is not sure how long the recovery can take. His thesis is that investors will soon end up in an “information gap” as the quarterly earnings season is drawing to a close.
– That’s when the macro noise takes over, Diane Jaffee tells Marketwatch.
In concrete terms, he believes that investors will be forced to take a closer look at macroeconomic figures, such as 36.5 million newly registered unemployed, and react negatively as they take the extreme damage that the crown crisis has caused to the economy.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any other use of all or part of the content may only be made with written permission or as permitted by law. For more terms see here.
