The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Wall Street is backed by trade optimism
Information is not investment advice
On Friday, American shares headed north, with the S&P 500 braced for reporting its best quarterly outcome for more than nine years, backed by optimism over the latest round of trade talks between China and America.
Treasury Secretary Steven Mnuchin told that America held constructive negotiations in Beijing. Meanwhile, Chinese state news agency informed that the two sides negotiated relevant agreement documents, achieving new progress.
Next week a Chinese delegation headed by Vice Premier Liu He is going to come to Washington for another round of negotiations.
Trade-sensitive industrials went up by 0.65%, while chipmakers having a large revenue exposure to China, jumped too, with the Philadelphia chip index soaring by 1.13%.
As for the broader technology sector, it soared by 0.46%.
The previous week growth fears were driven when the major US bank gave up projections for interest rate lifts this year and the US Treasury gain curve reversed for the first time since 2007, which appears to be a historical sign of a meltdown.
ET the Dow Jones Industrial Average managed to rally by up to 0.35% hitting 25,806.93. As for the S&P 500, it surged by 0.24% showing 2,822.26. The Nasdaq Composite headed north by 0.35% ending up with 7,696.03.
Latest data revealed that American consumer spending tacked on in January and income soared a bit in February, suggesting that the American economy was rapidly losing momentum after surge speeded down in the fourth quarter.
DowDuPont headed south by 2.1% after brokerages decreased their price targets on the chemical company, referring to bad weather as well as margin pressures.
In addition to this, Celgene Corp ascended by 6.4% right after proxy advisory company Institutional Shareholder Services underpinned counterpart drugmaker Bristol-Myers Squibb Co's vote in favor of a takeover of the company.
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