On the 17th (Eastern Time), New York stocks rebounded on hopes that the US retail sales data for April and the easing of lockdowns in China would boost economic growth.
Retail indicators are strong… The three major indices rebounded all at once
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At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 32,654.59, up 431.17 points (1.34%) from the previous day.
The Standard & Poor’s 500 Index rose 80.84 points (2.02%) to 4,088.85, up 80.84 points (2.02%) from the battlefield, and the Nasdaq index, which focuses on technology stocks, closed at 11,984.52, up 321.73 points (2.76%) from the battlefield.
All 11 sectors of the S&P 500 rose with the exception of consumer staples -1.15%. △Consumer discretionary 2.68% △Consumer staples -1.15% △Energy 1.14% △Financial 2.69% △Healthcare 1.38% △Industry 2.28% △Raw material 2.86% △Real estate 1.05% △Technology stock 2.91% △Communication service 1.82% △Utility 1.02%, etc. recorded
The stock market rebounded today following several weeks of steep losses. “There is a war going on over whether inflation will collapse first or consumers will collapse first,” said AmeriPrice Financial, a global market strategist. are doing it,” he told Archyde.com.
The U.S. Department of Commerce’s retail sales figures for April were up 0.9% from the previous month. Excluding automobiles, retail sales rose 0.6%. It was slightly lower than the market consensus (1.0%), but despite the worst inflation in 40 years, Americans are still actively spending. Moreover, the March index was revised to 1.4% from the previously announced 0.7%.
Jeffro Roach, chief economist at LP Financial, told Archyde.com that US consumers are surviving inflation headwinds.
Shares bounced back slightly following falling slightly from their highs today as they absorbed inflation comments from Federal Reserve Chairman Jerome Powell. “The Fed will continue to tighten monetary policy until inflation is definitely down,” Fed Chairman Powell said at an event hosted by the Wall Street Journal.
Some experts raised the possibility of a recession and questioned whether the stock might sustain its uptrend. “The bearish remains solid despite the rebound,” Chris Senek, investment strategist at Wolf Research, said in a note today.
There was also advice that the short-term rise would be limited. “Historically, the uptrend might last a week or two,” said Susquehanna’s Chris Murphy.
After Berkshire Hathaway was reported to have bought a large number of shares in Citigroup and Paramount Global, the stock prices of the two companies rose 7.6% and 15.4%, respectively, on the same day.
Semiconductor-related stocks also showed an upward trend. Advanced Micro Devices (8.7%), Nvidia (5.3%) and Qualcomm (4.3%) rose.
Travel stocks also surged. United Airlines (7.9%), Delta Air Lines (6.7%) and American Airlines (7.7%) rose.
MSCI, the leading global stock index, rose 2.0%.
The yield on the 10-year U.S. Treasury bond rose 10.7 basis points (bp = 0.01 percentage point) to 2.986%.
The dollar index, which measures the value of the dollar once morest the six major currencies, fell 0.787%.
European stock markets ended higher.
The DAX index of the Frankfurt Stock Exchange in Germany closed at 14,185.94, up 1.59% from the closing price of the previous trading day, and the CAC40 index of the Paris stock market in France, up 1.30% to close at 6,430.19.
The London Stock Exchange’s FTSE 100 index rose 0.72% to 7,518.35, and the pan-European Euro Stoxx50 index rose 1.52% to 3,741.51, respectively.
Oil prices fall as Venezuela resumes trading
On the New York Mercantile Exchange on the same day, the price of West Texas Intermediate (WTI) for June contract ended at $112.40 per barrel, down $1.80 (1.6%) from the previous day.
The price of June Brent crude on the London ICE Futures Exchange fell by $2.31 (2%) to $111.93 per barrel.
Oil prices fell following news broke that the Biden administration would approve a deal this week for Chevron to negotiate with the Venezuelan government. Chevron, an American energy company, is preparing to reopen its oil business in Venezuela. In March, Chevron formed an in-house team to resume its oil business in Venezuela and inquired with the Biden administration if it might resume business.
Ed Moya, an analyst at Oanda, said: “Oil prices surged at the beginning of the market as China’s response to COVID-19 appears to be going in the right direction, but the EU’s embargo on Russian oil might turn into tariffs rather than bans. After the news came, the increase was returned,” he said. He added that “if the EU accepts a strategy of phasing out tariffs on Russian crude,” it might put downward pressure on oil prices.
US gold futures rose 0.3% to close at $1818.9.
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- Yoon Joo-hye
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