Trade War Fears Off, Risk On
$DIA, $SPY, $QQQ, $VXX
Global stock indexes rose Thursday as investors around the world grew more optimistic that a trade dispute between the US and China will resolve without much damage.
In the US financials retailers posted some of the biggest gains.
The rally started Wednesday as American and Chinese officials reassured investors that they are willing to talk and aren’t rushing into a trade war that could hurt global economic growth and company profits.
Thursday, banks rose along with interest rates, retailers and consumer-focused companies kept rising, and industrial and technology companies turned higher.
Between 22 March and 4 April, the S&P 500 rose at least 1% or fell at least 1% in 8 out of 9 trading days.
Trade tensions have been the market’s main focus over the last few weeks, but that will change next week because companies will start to report Q-1 results in earnest on 13 April.
Investors are expecting another Quarter of strong profit growth, and the reports will give investors more insight into the effects of the recent corporate tax cuts on the economy as well as company profits and spending.
Companies that pay hefty dividends, such as utilities and real estate investment trusts, lagged the rest of the market. Their large dividend payments make those stocks similar to bonds, and investors find the stocks more appealing when bond yields are low.
Thursday, the major US stock market indexes finished at: DJIA +240.92 at 24505.22, NAS Comp +34.44 at 7076.55, S&P 500 +18.15 at 2662.84
Volume: Trade on the NYSE came in at 754-M/shares exchanged
- NAS Comp +2.5% YTD
- S&P 500 -0.4% YTD
- DJIA -0.9% YTD
- Russell 2000 +0.5% YTD
HeffX-LTN’s Market Indexes Technical Analysis