Hi Everyone,
The stock market rose on Friday, as stocks bounced back following their worst day in almost three months. The Dow was up 478, or 1.9%, to 25,606, the Nasdaq gained 96, or 1.0%, to 9,589, while the S&P 500 rose by 39 or 1.3%, to 3,041. Advancing issues outnumbered decliners by a 7-to-3 ratio on the NYSE, where volume was lighter than it has been of late.
Traders said that Friday’s bounce doesn’t mean that the oversold correction is over, but the fact that stocks remained above their lows from Thursday is a positive sign for bulls. As one trader explained, “Stocks stabilized following the scary morning reversal on Friday, despite the negative COVID-related headlines. However, volatility remains high, and the short-term charts still seem wounded.”
Even though last week ended in a decisively bullish mood and the Nasdaq’s new all-time high made headlines early on this week, stocks suffered a major blow on Thursday. The Fed’s gloomy economic outlook and the uptick in the number of COVID cases in the U.S. triggered the worst one-day selloff since mid-March on Wall Street, with the Dow shedding almost 2,000 points in one session. Following two bullish weeks, cyclical issues led the way lower again. Although political tension eased in the U.S., together with China-related woes, investors lost confidence regarding the global economy. The mixed global COVID situation has also been weighing on risk assets, as Latin America and parts of Asia continue to report worrisome numbers, amid the reopening push in Europe and the U.S.
As always, have a great evening and stay tuned!!!
Joe
