Let’s explore the reason for gains on Dow Jones.
- U.S. banking regulators are about to ease restrictions from Volcker rule that will free up billion of dollars for banks.
- U.S. Stocks were down for most part of the day on the back of rising corona cases and unemployment claim.
- The surge in stocks was largely at the end of the trading session on banking news.
- Stocks in Wall street ends in positive territory in which Dow gained 299.66 points, S&P closed positively with 33.43 points gain and Nasdaq closed with gain of 107.84 points.
- Asian markets are trading with mix biased this morning (7.32 a.m.).
- SGX Nifty is in positive note this morning (7.32 a.m.).
Why Dow rises in late trading session after trading lower in most part of the day?
- U.S. banking regulators are planning to ease out restrictions on banking system with forgoing of Volcker rule will put billion of dollars in hands of bank. This will further used for lending purpose to Venture capitalist and other funds to boost the demand in the economy. Lifted the stocks on Wall Street in late trading session.
- Stocks were down before this news due to record number cases surged in U.S. and still economy is fighting with high unemployment data. United States suffered more than 45000 new corona cases on Wednesday, earlier highest cases registered was 9000 cases on April 26. Unemployment claim for last week stood at 1.48 million, higher than estimate of 1.3 million by the economist. These were factors that resulted in falling stocks in earlier trading session on Thursday.
- Banking news lifted the stocks sentiments and all three indices closed in green territory.
- Dow Jones Industrial Average increased by 299.66 points, or 1.18%, close at 25,745.60.
- The S&P 500 gained by 33.43 points, or 1.10%, ends at 3,083.76.
- Nasdaq Composite Index surged by 107.84 points, or 1.09%, close at 10,017.00.
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