Despite some concerns about the economy and the Federal Reserve’s monetary policy, the economic recovery remains robust. However, uncertainty surrounding the upcoming presidential election could create volatility in the markets.
Wall Street rises steadily this Thursday and recovers from a mixed session, following the publication of encouraging economic data in the United States. The S&P 500 rises 0.7%, reaching a new record, driven mainly by the gains of Micron TechnologyThe Nasdaq Composite climbed 1.2%. The Dow Jones Industrial Average gained 250 points, or 0.6%.
Micron rises 18% after issuing strong guidance for the current quarter. Micron’s fiscal fourth-quarter results also beat analysts’ estimates. Other semiconductor-related stocks, such as Applied Materials and Lam Research, rose 6% in line with Micron.
A raft of economic data supported the view of a robust economy, easing fears that the Federal Reserve is cutting rates aggressively due to an economic slowdown.
Also following the rally that began in China, the Asian giant’s companies listed on the NYSE are registering increases that in many cases exceed 10%. This is the case of Fantasia Holding, which climbs 25.5%; TAL Education (+25.5%) and Huize Holding (+16.7%).
Weekly jobless claims fell more than expected, pointing to a stable labor market. Durable goods orders for August were unchanged, in contrast to economists’ expectations for a decline. In addition, the final reading of second-quarter GDP was unchanged at a solid 3%.
Wall Street: What the market is analyzing
On Wednesday, both the S&P 500 and the Dow fell, taking a breather from their recent gains. Both indexes had hit new record highs earlier in the day. Tom Lee, co-founder and head of research at Fundstrat Global Advisors, attributed some of Wednesday’s volatility to the upcoming presidential election.
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“What stocks do over the next month is a little unpredictable, and I think that’s what we’re seeing, because there was some rebalancing and now we’re looking ahead to the 40 days until the election,” he said on CNBC’s “Closing Bell” on Wednesday afternoon. “A lot of [inversores] They don’t want to commit any capital until after Election Day. I don’t think it matters who wins; they just want to get that event behind them.”
Source: Ambito
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