Let’s Check the latest news on the Stock market.
Coronavirus cases are surging in Europe. The second wave of the pandemic has already begun, causing investor’s anxiety. British Prime Minister Boris Johnson spoke about new restrictions that will probably last six months. He advised people to work from home if possible, adding that the country is at a perilous turning point for the pandemic.
Despite such negative news, stock markets moved up from the bearish territory on Wednesday. Dip buyers alleviated some concerns over remarks of the Fed after the previous days’ market selloff. The agency’s officials pointed to a slow economic recovery, causing some turmoil.
Equities might climb up over the medium term, thanks to the likely development of a successful vaccine and the passage of new U.S. fiscal stimulus, along with an end to election uncertainty, and continued global monetary support. However, the path to “more normal” doesn’t seems easy – noted Mark Haefele, the chief investment officer of global wealth management at UBS Group AG.
On Tuesday, equities plummeted down after Fed Chairman Jerome Powell declared that the economy has a long way to go before fully recovering. Powell also mentioned that economy would need further support to rebound more quickly. Additionally, Chicago Fed President Charles Evans stated that rates could rise before the inflation target is reached.
The S&P 500 gained. What about the Nasdaq?
The S&P 500 index surged forward by 1.1%. Retailers and tech companies led the gainers from the S&P 500, though other groups increased as well. The Nasdaq 100 also climbed up. On the other hand, the Dow Jones Industrial Average lowered amidst a decline in banks.
The majority of American stocks are still heading toward their first monthly decline since March.
However, Nike Inc. rallied as the sportswear maker returned to profit and reported far better revenue than analysts predicted.
In Europe, the Stoxx 600 Index gained 0.2%. But the MSCI Asia Pacific Index plummeted down by 0.8%.