Dow and S&P 500 surge, while Nikkei 225 continues to struggle
US indices were given a boost by yesterday’s inflation data, but the Nikkei 225 has not seen a similar bounce.
Dow rebounds following US inflation reading
Yesterday’s softer core inflation reading in the US provided stock markets with a powerful boost, sending the Dow Jones up 700 points in the cash session.
After dipping below 42,000 in early January, the price has now recovered back to the late December high at 43,300. From here the next target is the 45,000 record high from early December.
S&P 500 surges towards 6000
The S&P 500 enjoyed a solid day too, rallying back towards 6000.
Lower highs at 6000 from earlier in January and then at 6040 from late December are the next hurdles to watch, followed up by the 6100 peak from early December.
A close back below 5900 might well signal that a new leg lower has begun.
Nikkei 225 struggles below 39,000
The Nikkei 225 has not participated in the global surge, remaining stuck below 39,000.
Dips towards 38,000 this week have been met by buying pressure, as shown by the long wicks on the daily candles. This suggests that support remains strong. However, buyers have been unable to push the price past 39,000, leaving the index stuck in a narrow range.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
