Investing.com | Mar 25, 2020 07:58
U.S. futures for the Dow Jones, S&P 500 and NASDAQ, whipsawed this morning, going from red, to green to red once again, consolidating after Tuesday's buoyant Wall Street rally. Global equities jumped on Wednesday, in the slipstream of the best U.S. market performance in more than a generation and the Dow Jones Industrial Average's best day since 1933.
Yesterday's U.S. session was fueled by hopes that U.S. lawmakers and the Trump administration would finally reach a preliminary deal on $2 trillion worth of coronavirus stimulus—which occurred in the early hours of Wednesday morning—to help support U.S. workers and businesses as the global pandemic weighs on the country's and the global economy. The official vote on the bill will take place later today in Washington.
Treasury yields rose, gold and the Japanese yen slipped as investors shift out of safe havens.
h2 Global Financial Affairs/h2Traders are eagerly waiting to see if equities might actually post a two-day ascent later today, the first since the pandemic-fueled selloff began a month ago. Meanwhile, global economies are tapering to a standstill as the number of COVID-19 cases across the world escalates, and the fatality rate grows. The current count at time of writing: 425,493 cases, 18,963 deaths.
The Stoxx Europe 600 Index opened higher, driven by energy and financial sector shares. Asian markets enjoyed some of their best gains since 2008. Japan's Nikkei outperformed (+8.13%); in Soeul, the KOSPI rose (+5.89%); Australia's ASX 200 also saw robust gains (+5.54%).
On Tuesday, U.S. equities soared on hopes, now realized, that Congress was closing in on the biggest fiscal stimulus plan in the country's history.
The Dow leaped more than 11%. Nonetheless, after posting a series of descending peaks and troughs after falling below the 24,681 low from Feb. 28, the mega cap index remains in a downtrend. That would mean yesterday's price action was a corrective rally within a downtrend.
The S&P 500 jumped from its lowest level since 2016, to its biggest single-day gain since October 2008.
Although yields, including for the benchmark 10-year Treasury, increased in tandem with yesterday’s monster rally in the U.S., the move higher was slight. As well, though they're edging higher again today, yields don't appear to be in a hurry to confirm the full on return of risk appetite. Perhaps that's because they've completed a rising flag which is bearish after the preceding plunge.
The U.S. Dollar Index fell for a fourth straight day.
With the index at 101, it will continue to trade with possible demand at the top of a rising channel. The next support waits at the psychological 100 level, the top of a failed broadening pattern.
Oil climbed for the third straight day.
The price has been fluctuating below the $25 level.
h2 Up Ahead/h2
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