Will US Indices' Rebound Get The Global Investor Sentiments? Hopes Rise As Dow Jones & Nasdaq Surge
Friday's gains in U.S. stocks made what would have been one of the worst weeks for the market this year just a mediocre one.
With a 1.1 per cent rally, the S&P 500 had its best day in six weeks and reduced its weekly loss to 2 per cent. 1 per cent was gained by the Nasdaq composite, and 498 points, or 1.2 per cent, were added to the Dow Jones Industrial Average.
S&P 500
The broader representation of the market; the S&P 500 was also breaking down with negative sentiments, topuching the week's low of 5,842.00 points, after came down from a high of 6,079.12 points which was recorded on monday, December 16. The recovery in the last session of the trading week by the support of the tech giants.
The S&P 500 hit opening bell at 5,842.00 points before going on to touch the day high level of bell at 5,982.06 points with optimist traders saving the week from being worst in the calender year.
Dow Jones Industrial Average
The oldest index in US exchanges turned its head towards green territory, to prevent what would have been the worst week in the calendar year, the rally in last trading session saved the day; in this week the index fell from 43,902.89 points; subsequently went on to toucht the low of 42,296.26 points in opening hour of the last trading session this week.
The Dow jones Industrial average was taken over by the bullish and optimistic traders and investors, after a week long of downfall of the index, after the Federal Reserve chairman hinted easing of rate cuts The Dow Jones went on to touch the day high level of 43,216.03. The Dow Jones concluded the last trading session at 42,840.26 points on the US bourses.
Nasdaq Composite
The tech-heavy index comprising tech titan and giants like smartphone manufacturer Apple and chip making mammoth Nvidia along with other members of the magnificent seven pack. Nasdaq composite's tech companies was one of the main reason which led the recovery rally saving the day.
Nasdaq Composite went on touch the day high of 19,758.61 points fuled by prevailing sentiments, after hitting openoing bell at 19,190.04 points surging about 385.84 at day high level. The index concluded at 19,572.60 points zooming about 1.03 per cent amounting to 199.83 points.
Trump bump has vanished
Since Trump's election-day victory, which sparked expectations of quicker economic expansion and more lenient regulations that would increase corporate profits, the U.S. stock market has lost some of its gains. Concerns have grown that Trump's inclination for tariffs and other policies may result in increased inflation, a larger national debt, and challenges for international trade.
The better-than-expected inflation data released on Friday caused traders to reduce their bets on zero cuts in 2025, which they now believe to be 16 per cent likely. Although lower borrowing costs for individuals and companies would stimulate the economy, lower interest rates could also contribute to inflation.