Let’s explore the reason for rise in Dow Jones Indices.
- Investors sentiments have turned positive in U.S. on the back of re-opening of business activities.
- Many analysts expects a V-shape economical recovery in U.S. resulting in surging Wall Street.
- Investors are hopeful that Trump administration will come out with $ 1 trillion package this summer to bring economy on track.
- Investors ignored the surging Corona virus cases around the world with record rise of 183000 cases on Sunday, this is highest single day rise reported by World Health Orrganisation.
- All states in U.S. experienced the rising corona virus cases.
- Worst hit States are California, Florida, South Carolina, Missouri, Nevada, Montana, Utah and Arizona.
- Stocks in Wall street ends in green territory in which Dow gained 153.50 points, S&P closed positively with 20.12 points and Nasdaq also ends with an uptick of 110.35 points.
- Asian markets are trading with negative biased this morning on the back of surging cases (7:23 a.m.)
- SGX Nifty is in negative note this morning. (7:23 a.m.)
Why Dow rises on Monday amid surging corona virus cases?
- Stocks surged on the back of a hope that there will be V-shape recovery in U.S. economy. Since all states in U.S. have eased out the lock down restrictions and economical activities are rolling now. This is the prime reason for the surge in U.S. Stocks.
- There is another hope that Trump administration will soon announce a package of $1 trillion to bring the economy back from the ill affect due to pandemic.
- Investors have ignored a sudden spike in corona cases around the world and with in United States. On Sunday, there is a highest single day jump in cases that stood 183000 around the world.
- Today all states in U.S. are fighting with surged corona cases with worst hit States are California, Florida, South Carolina, Missouri, Nevada, Montana, Utah and Arizona.
- All ready U.S. economy is under the grip of high unemployment and with rising cases the situation will get worse.
- China decision to close parts of Beijing highlights rising corona virus cases. This shows all is not well in China and more negative news is expected.
- Dow Jones Industrial Average increased by 153.50 points, or 0.59%, close at 26,024.96.
- The S&P 500 gained 20.12 points, or 0.65%, ends at 3,117.86.
- Nasdaq Composite Index increased by 110.35 points, or 1.11%, close at 10,056.48.
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- SGX Nifty is suggesting a negative start with a fall of 0.74% at present time (7.18 a.m.). Indian Markets will start at around 10250 level. Asian markets are trading negative this morning.
- The structure of the market is positive and that is the reason to follow “Buy & Dip strategy”. Incase Nifty has a fall at around 10150-10200 zone than you can go long on first sign of recovery with a stoploss at 10150 and target 10300 point.
Read the article on “Stocks for long term portfolio“