Wall Street continues to rally
The US stock market is experiencing growth in the first full trading week of 2019.
Wall Street has continued its upward swing on the strength of the US-China trade talks and a recovery in tech stocks. The US stock market has climbed by as much as 200 points.
Wall Street rises with optimism about China and tech
The US stock market has rallied over the last few days after the latest trade talks between US Secretary of State, Mike Pompeo, and Chinese Vice Premier, Liu He. Both sides expressed hope that the high trade tariffs between the countries can be lowered and they can sign a new trade agreement.
Financial experts like MRB Partners are hopeful that the talks will lead to an end to the US-China trade war.
‘The U.S.-China power struggle will persist for years, but both economies are now slowing and neither government has the latitude to pursue policies that could threaten to trigger a global recession. The Argentina [ G20 Summit] handshake will morph into a near-term truce’, said MRB strategists.
In addition the US- China talks, Wall Street surged because of FANG (Facebook,Apple,Netflix, and Google) shares. In contrast to Apple stock dropping after weak first-quarter (Q1) guidance, the tech company’s stock is up after chief executive officer (CEO), Tim Cook, assured investors in an interview that the corporation’s ecosystem is still solid.
Ryan Nauman, market strategist at Informa Financial Intelligence, noted that investors are confident after a downturn in tech stocks.
‘People are getting a bit more optimistic. I think investors noticed that the FANG stocks are solid companies and their valuations came down a lot after the big sell-off,’ said Nauman.
Volatility despite US stocks rally
While the recent US stock market rebound is encouraging, there are financial analysts that believe that volatility is not over yet in the stock market. Kate Warne, investment strategist for Edward Jones, noted that Wall Street volatility is typical when investors are presented with a lot of financial information and are uncertain about where the economy is headed.
‘You have new information that's driving stock prices both higher and lower, and that's pretty typical when there's uncertainty and there's a lot of new information coming into the market,’ said Warne.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
See an opportunity to trade?
Go long or short on more than 13,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.