Lets explore the reason for Surge US Stocks
- Improved housing sales data in May compared to April, suggesting fast economical recovery.
- Analyst of the view that US economy will show V-Shape economical recovery in near future after pandemic ends.
- Investors are hopeful of further stimulus both by Trump administration and Federal Reserve to boost the economical recovery.
- Investors ignored the rising corona virus cases and warnings hinted by US Governors to roll back some easing lock down restrictions to control the spread of the cases.
- Stocks in Wall street ends in positive territory in which Dow gained 580.25 points, S&P closed positive with 44.19 points and Nasdaq closed with gained by 116.93 points.
- Asian markets are trading with positive biased this morning (8.00 a.m.).
- SGX Nifty is in positive note this morning (8.00 a.m.).
Why there is surge in US stocks amid corona cases?
- Improved pending housing sales data with 44.3% in the month of May from April, showing recovery in economical data lifted the investors sentiments on Wall Street.
- Also in US markets the investors are hopeful of stimulus package both from Federal Reserve & Trump administration also created a positive environment on Wall Street.
- US Governors are hinting of roll back of some easing lock down policies on rising cases in US to fight with rising corona virus cases. A key risk in near future for global equities.
- This resulted in sharp uptick in U.S. indices with a rise of more than 1% on all the three indices.
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- Dow Jones Industrial Average surged by 580.25 points, or 2.32%, close at 25,595.80.
- The S&P 500 gained by 44.19%, or 1.47%, ends at 3,053.24.
- Nasdaq Composite Index rises by 116.93 points, or 1.20%, close at 9,874.15.
Asian Markets This Morning
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- Soaring India and China relationship with Indian Government banning the China’s popular Apps in India will result in opening of economic war among the countries. So today traders need to be vigilant not to trade long even with US stocks rise. They should wait to let the market decide the direction with in one hour of trading and take the position accordingly.
Written By: Akhil Mahajan, M.D. Mutual Fund Advisory, 9906357069, www.mutualfundadvisory.co.in
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