Let’s explore the reason for rise in US stocks.
- Dow rises this quarter 18% best in 33 years, S&P gained 17% highest quarterly performance since 1998 and Nasdaq surged 31% best quarter since 1999.
- Stimulus packages both by Federal Reserve & US Government first starting lifting the sentiments Since March and now improving economical data fulling the rally.
- Yesterday too all the indices closed with positive gain after surging consumer confidence.
- Stocks in Wall street ends in green territory in which Dow gained 217.40 points, S&P closed positively with 47.05 points and Nasdaq also ends with an uptick of 184.61 points.
- Asian markets are trading with positive biased this morning on the back of surging cases (7:21 a.m.)
- SGX Nifty is in negative note this morning. (7:21 a.m.)
Why US stocks showed best quarterly gains since 1988?
- The US stocks rally started since March on the rising liquidity pump in by both Federal Reserve & Trump administration. The package size is huge to bring economy back on growth engines. Also low interest rates in fixed instruments have resulted into high equity investment lifted the sentiments. The story does not end here with new hope of $1 trillion by Trump administration is underway.
- The good economical news is also fueling the economy. The recent surge in consumer confidence index to 98.1 in May best Since 2011. Yesterday this lifted positive sentiment on Wall Street.
- Even markets have been ignoring the warning issued by infection experts in US with recent remarks by Dr. Anthony S. Fauci, the director of the National Institute of Allergy and Infectious Diseases, expecting 100000 cases per day incase pandemic not controlled. Federal Reserve Chairman also showed a worry yesterday on rising cases and its implication on the economy.
US Markets
- Dow Jones Industrial Average decreased by 217.08 points, or 0.85%, close at 25,812.88.
- The S&P 500 fallen by 47.05 points, or 1.54%, ends at 3,100.29.
- Nasdaq Composite Index increased by 184.61 points, or 1.87%, close at 10,058.77.
Asian Markets In Morning
| Indices | Current Value | Prev. Close | % Change |
| Nikkei 225 (Jul 01) | 22,246.20 | 22288.14 | -0.20% |
| Straits Times (Jul 01) | 2,616.56 | 2589.91 | 1.03% |
| Hang Seng (June 30) | 24,427.19 | 24301.28 | 0.52% |
| Taiwan Weighted (Jul 01) | 11,703.87 | 11621.24 | 0.71% |
| Kospi (Jul 01) | 2,122.82 | 2108.33 | 0.69% |
| Jakarta Composite (Jul 01) | 4,909.27 | 4905.39 | 0.08% |
| Shanghai Composite (Jul 01) | 2,995.70 | 2984.67 | 0.37% |
| SGX Nifty (Jul 01) | 10,237.50 | 10275.00 | 0.36% |
Nifty 50 outlook for the day.
- SGX Nifty is suggesting that Indian Markets will start at around 10250 level. Today strategy is “Buy Nifty Future” with a target of 10350 level and stop loss at 10150 .
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Author: Akhil Mahajan, M.D. Mutual Fund Advisory, www.mutualfundadvisory.co.in, 9906357069
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