According to the news report by CNBC, stocks in the United States rose, regaining some of the losses the markets have experienced this week, as investors assessed the impact of the increasing trade tensions between the US and China.
The Dow Jones Industrial Average saw a 207.06-point gain on Tuesday and closed the day at 25,532.05, thanks to the boost in Boeing’s and Visa’s share prices. This was the best day the 30-stock index saw since April 12.
The S&P 500 went up by 0.8% to close the day at 2,834.41 points, thanks to the outperformance of the technology shares.
The Nasdaq Composite Index also rose 1.1% to close the day’s trading at 7,734.49.
On Monday, the indices in the US dropped sharply, making it the worst day for stocks since January. The Dow fell by 617 points, the S&P 500 dropped 2.4% and the Nasdaq fell by 3.4%.
The CIO of E-Valuator Funds, Kevin Miller stated that the reason why this recovery was taking place was because market fundamentals had not changed. He said that the American economy remained strong.
Miller also added a caveat that the country was also going through something that it had never experienced before. The trade war with China was altering investing into more of speculation because no one knew for certain which direction this was going to take.
However, not everyone was as optimistic as Miller. The Chief Executive Officer of Luken Investment Analytics, Greg Luken stated that this was just a temporary recovery. He believed that the market slump was going to last for a while, and was not something that would be resolved in the short term.
Bloomberg reported the status of international markets in trading so far today. According to the report, stocks in Europe continued to fall, and American equity futures slipped as the rebound experienced on Tuesday began to lose momentum.
The S&P 500, Dow Jones and Nasdaq contracts all fell, along with the STOXX Europe 600 Index.
Interestingly enough, stock markets in Asia did well today, with China leading the gains. This happened after data was released that showed that the mainland Chinese economy was losing momentum, but that the government was expected to boost stimulus.
The Australian dollar fell as China’s industrial output was reported. Retails sales as well as investments slowed down for the Asian giant last month, which highlighted the fragility of the world’s second largest economy.
In international trading today, the Futures on the S&P 500 Index dropped by 0.1%. The STOXX Europe 600 Index saw a 0.2% drop, the Shanghai Composite Index went up by 1.9%, the MSCI Emerging Markets Index went up by 0.3% and the MSCI Asia Pacific Index went up by 0.5%.
The FOREX, the Bloomberg Dollar Spot Index saw marginal gains of 0.05% and now stands at 1,202.85. The offshore Yuan went up by less than 0.05% to trade at 6.9034 to the US Dollar. The British Pound went up by 0.1% to trade at $1.2914. The Japanese yen also went up by 0.1% to trade at ¥109.53 to the dollar. The Euro went up by 0.1% to trade at $1.1214.
In the bond markets, the US 10-year Treasuries fell 2 basis points to 2.39%, the German 10-year yields also dropped 2 basis points to -0.09%. The Swiss 10-year yields were also down by 1 basis point to -0.37%.
In commodities, the West Texas Intermediate, the American crude oil benchmark, was down by 0.9% to trade at $61.22 per barrel. The price of Gold went up by less than 0.05% to trade at $1,297.10 per ounce.