The S&P 500 rallied by 2% on Thursday. The Nasdaq 100 also surged forward by 3%. U.S. stock market traded in the green after a three-day-long downfall. The Nasdaq composite had soared recently, before losing11%. Its average price lowered as a result. However, it managed to rebound during the last session. The S&P 500 Index hit the highest point since June as well.
Meanwhile, Computer chip and hardware makers rose again. Apple Inc. shares, and Advanced Micro Devices Inc. jumped significantly in Europe, gaining the most. Tesla also surged forward from its closely watched level after enduring its biggest selloff.
Dip buyers had been greatly rewarded for the last 12 years. But there are substantial amounts of capital on the sidelines, which is still available to come into the stock market – stated Randy Frederick, the vice president of trading and derivatives at Charles Schwab & Co.
Still, the recent selloff frightened investors. Some fear that it isn’t over yet and stay on guard for any signs that it may resume. In addition, traders were waiting for the European Central Bank to announce its latest policy decision on Thursday and weekly jobless claims data in the U.S., which was also due yesterday.
How did the European and Asian stocks fare?
The Stoxx Europe 600 Index rallied by 1.6%, and Germany’s DAX Index also skyrocketed by 2.1%. On the other hand, the MSCI Asia Pacific Index plummeted down by 0.8%.
Treasuries declined as well, and the British pound headed for its longest decreasing streak since March. Investors are concerned that negotiations may fail over changes to the Brexit withdrawal deal.
U.S. equity markets remain very volatile. The three-day rout dropped the Nasdaq 100 into a correction before the Wednesday’s rebound.
According to Lawrence Creatura, a portfolio manager at PRSPCTV Capital LLC, the market was moving very fast. It seemed very reasonable to pause and catch its breath while deciding what it wants to do next. Such a rush caused all this volatility.