The US stock market has rebounded swiftly despite a raft of terrible economic news driven by a massive boost from the Federal Reserve (Fed), hopes of a successful reopening of the economy and possible coronavirus treatments, as well as investors' fear of missing out. But not everyone is buying the bounce.
The S&P 500 closed on Friday at 2,874, more than 28% above its recent low trough reached on March 23 and just under 18% below its record high close reached on Feb. 19. That rally has been spurred by the US central bank going into overdrive to try to keep the economy from suffering lasting damage, as well as a $2.3 trillion federal stimulus package.
Microsoft stock jumped 8.15%, Apple stock 5.5%. Amazon stock, the third trillion-dollar US Company, skyrocketed 16%. Among the best ETFs the Innovator IBD 50 ETF (FFTY) popped 5.9% last week. The iShares Expanded Tech-Software Sector ETF (IGV) rallied 6.8%. The VanEck Vectors Semiconductor ETF (SMH) leapt 6.65%. Alibaba (BABA) stock has a 231.24 consolidation buy point. But investors could buy BABA stock as it crosses a downward-sloping trend line. Alibaba stock hit that trend line on Friday but reversed lower. Even so, Alibaba stock rose 6.7% last week. AMD stock has a 59.27 cup-base buy point. Shares of the chipmaker already cleared an early resistance area just above 50 last week. AMD stock soared 17% to 56.60. A handle would give AMD stock a chance to rest before a breakout.
US retail sales suffered a record drop in March and output at factories declined by the most since 1946, buttressing analysts’ views that the economy contracted in the first quarter at its sharpest pace in decades as extraordinary measures to control the spread of the novel coronavirus shut down the country. Retail Sales plunged 8.7% last month, the biggest decline since the government started tracking the series in 1992, the US Commerce Department said. Economists polled by Reuters had forecast retail sales tumbling 8.0% in March. Retail sales dropped 6.2% compared to March last year.
US lawmakers are very close to an agreement on approving extra money to help small businesses hurt by the coronavirus pandemic. An agreement would end a stalemate that has lasted more than a week over Republican President Donald Trump’s request to add $250 billion to a small-business loan program.
The economic numbers are bad, but the action in the stock market suggests investors a temporary setback given the national effort to combat-head-on the health crisis through aggressive social distancing. At the same time, investors able to rally around several companies that are doing well out of the coronavirus crisis. Amazon has risen to all-time highs, while pharmaceutical giant Gilead recently drove another Dow Jones rally.
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at email@example.com.