Wall Street shares gathered on Friday to their biggest daily jump from President Trump’s election and bounced off a drop that left the market after weeks of sales. However, profits were not enough to overcome steep losses from the earlier week and S&P 500 remained in the negative territory for the whole week.
The Benchmark Index increased by about 2.1 percent on Friday, as the risk of government shutdown was decreasing and NASDAQ technologically difficult composite and the Russell Index of smaller companies jumped more than 2.5 percent. Shares in Europe and Asia have also gathered, as well as cryptocurrencies, oil prices and other investments that have recently been knocked down.
In a week the S&P 500 was still 2.3 percent, its fourth straight weekly drop after suffering his the sharpest decline of the year On Monday and fell on Tuesday and Thursday. There was an index on Thursday afternoon down by 10.1 percent Since its peak on February 19 and in Wall Street what investors call the repair. This is a decline of more than 10 percent and a symbolic feature of the dark mood of investors.
The biggest problem on Wall Street right now is the impact of tariffs and trade war, which could trigger the prices of manufacturers and consumers sharply higher, destimiment of consumers and damage to the economy.
“As long as the tariff threats of random tit-pro-tati are behind us, uncertainty means that the markets will remain on the edge,” said John Canavan, the main American analyst Oxford Economics.
These concerns are also evident in other markets – including the gold market. Gold that investors often seek as a safe refuge at the time of unrest, Hit the record Friday, after first breaking over $ 3,000 for a troy ounce.
The key question remains “where the real value is on the stock market that faces headwinds, cuts of fiscal expenditures and potentially softening economic data,” said Yung-Yu Ma, Chief Investment Director of BMO Wealth Management.
Friday’s bouncing into shares came despite new data from the University of Michigan, showing that consumers were less self -confident about economic outlook and more concern for inflation. Investors will have more data points that need to be considered soon, especially the latest economic projection from the Federal Reserve, which is scheduled to meet and discuss its interest policy next week.
Investors do not expect the Fed to lower rates this month, but any signal that the central bank is more willing to do so – to strengthen the economy – could increase the decreasing market at the end of this year.
