U.S. stocks closed higher at the end of the last session as gains in technology shares helped offset a late slide in financials. The dollar was changed insignificantly, but Crude oil surged forward.
The S&P 500 rallied for a third consecutive trading session, led by real estate and consumer discretionary shares, along with communication services. On the other hand, Citigroup Inc., JPMorgan Chase & Co., and Bank of America Corp. pushed financials into the bearish territory.
Jerry Braakman, the chief investment officer of First American Trust in California, stated that the market’s trying to figure out what to do next. In those times, there is always some volatility. He thinks it essential to figure out if this tech run is here to stay.
Meanwhile, Hennes & Mauritz AB led a rally among fashion retailers after surpassing profit estimates in Europe. In Germany, investors raised their expectations for the country’s economy. The offshore yuan skyrocketed to the highest level in a year, and stocks in Shanghai soared on evidence that China is accelerating out of the crisis.
Investors are waiting for some events to decide on the course of action. The Federal Reserve’s policy meeting is due on Wednesday. Traders want to gauge the outlook for markets following a decline of about 2% in global stocks this month.
What do the stocks market analysts say?
Analysts think that the Fed will maintain its dovish stance. The agency stated earlier that it would shift to a more relaxed approach to inflation. Meanwhile, Central bank largesse is shoring up sentiment in the face of risks from the pandemic, the possibility of a no-deal Brexit, and the U.S. presidential election.
Furthermore, the FOMC policy decision will be known today, along with news from Chair Jerome Powell’s conference. Bank of Japan, Bank of England, and Bank Indonesia policy decisions come Thursday. And Friday sees the quarterly expiration of futures and options on indexes and stocks in U.S. markets.
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