US stocks trending downward in early trading to close out week

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Investors cheer for some clarity from the Federal Reserve it was not on the verge of raising interest rates

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US Equity Futures Trading before the last trading session of the week.

Stocks in this article

Me: DJI dow jones average
$34764.82
+506.50 (+1.48%)
SP500 S&P 500
$4448.98
+53.34 (+1.21%)
me: comp NASDAQ Composite Index
$15052.243848
+155.40 (+1.04%)

On Wall Street, stocks rose broadly for the second day in a row, reversing the week’s losses. Investors were pleased to receive some clarity from the Federal Reserve a day earlier that it was not on the verge of raising interest rates.

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US stocks edged higher for the second day in a row, reversing a sharp fall at the start of the week. The S&P 500 rose 1.2% to 4,448.98. Over 85% of the companies in the benchmark index gained.

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The Dow rose 1.5% to 34,764.82, while the Nasdaq rose 1% to 15,052.24. The Russell 2000 rose 1.8% to 2,259.04. It’s up 1% for the week.

On Monday, four days after a broad sell-off, the rally propelled major indices to weekly gains and handed the S&P 500 its biggest skid since May and plunged the Dow down more than 600 points.

The sharp volatility of the market shows how quickly investor sentiment can change. With the market hovering near an all-time high, traders tend to view selling waves as buying opportunities.

Traders were feeling uneasy about how soon the US Federal Reserve might choose to rein in some of the support measures being given to markets and the economy. Those concerns were allayed until Wednesday, when the Federal Reserve indicated that it would not begin considering such a tapering of support until at least November, and indicated that it would reduce its benchmarks sometime next year. The interest rate may start increasing.

The Fed said monthly bond purchases made during the pandemic to help keep borrowing costs low “soon” will begin to slow if the economy recovers.

Meanwhile, benchmarks in Japan advanced but other Asian markets were lower on Friday amid concerns over troubled Chinese real estate developer Evergrande and the pandemic.

Some Chinese banks have disclosed what Evergrande owed them, trying to allay fears of financial turmoil as it has less than $310 billion in debt. Lenders say they could face potential default. Evergrande’s announcement that it’s paying off on Thursday helps ease some of the concerns.

Japan’s benchmark Nikkei 225 jumped 2.1% to 30,248.81 after it reopened from Thursday’s national holiday. South Korea’s Kospi ended 0.1% lower at 3,125.02. Australia’s S&P/ASX 200 slipped 0.4% to end at 7,342.60. Hong Kong’s Hang Seng fell 0.2% to 24,463.66, while the Shanghai Composite was down nearly 0.6% at 3,622.10.

Mizuho Bank’s Masayuki Tsunashima warned that potential troubles in Evergrande pose risks to the markets. He said that prolonged coronavirus outbreak also poses risks.

“Therefore, it cannot be ruled out that optimism remains fragile or, at least opportunistic as the underlying risks are not easily addressed, much less put to bed,” he said. . “And this is in line with markets that are prone to volatility and downside swings.”

Benchmark US crude oil rose 7 cents to $73.37 a barrel in energy trading on the New York Mercantile Exchange. It rose $1.07 to $73.30 a barrel on Thursday.

International benchmark Brent crude rose 20 cents to $77.45 a barrel.

In currency trading, the US dollar rose from 110.30 yen to 110.52 Japanese yen. The euro is priced at $1.1737, a slight change from $1.1736.


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