US stock markets moved up after a sharp fall on the eve
US, WASHINGTON (ORDO NEWS) — Trading on the US stock markets on Friday opened with growth. The main indices in the first half hour added 2-3%, oil rose above $ 39 per barrel. On the eve of the indices and fuel fell due to fears of the second wave of coronavirus and a restrained Fed forecast.
US companies resumed growth after stock markets opened on Friday. Oil prices also moved up.
- S & P 500 index (US includes the largest companies by market capitalization) grew at 17:00 GMT 2.8% to 3088 points, follows from the data of the New York Stock Exchange.
- The Dow Jones index (which unites the 30 largest US listed companies) added 3.2% to 25,923 points.
- The Nasdaq index (includes the largest US technology companies) added 2.5% to 9732%.
- The cost of contracts for the supply of Brent crude oil with execution in August rose above $ 39 and added almost 2% to the close of trading on the eve, follows from data from the Intercontinental Exchange in London.
On the eve of all three indices plummeted . They lost 4-6% each. One of the reasons was investors’ fears that a second wave of coronavirus could come in the USA. The reason for this was the reports of several states about the growth of new cases after the relaxation of restrictions. So, Texas on June 10 reported on 2,500 new confirmed cases – the maximum per day since the start of the epidemic. Because of this, shares of companies that would benefit from quarantine cancellation fell first of all: air carriers, cruise operators and non-food retailers.
Another reason was the forecast for the US economy published by the Federal Reserve on Wednesday. She warned that recovery from the crisis would not be quick, and unemployment would remain high for several years. “Their assessment of the economy was slightly less optimistic than the market expected,” – explains Bloomberg, Deputy Director for Investments in North and South America, UBS Global Wealth Management Solita Marcelli.
In addition, the US has a high unemployment rate. Although the number of people applying for benefits has been falling for 10 consecutive weeks, a total of 44 million Americans have applied for benefits in the past three months.
Oil fell at a minimum of 9%, dropping below $ 38 per barrel. The reason is also the fears of the second wave: in this case, restrictive measures may again be introduced, because of which the demand for fuel will fall again. In addition, in April-May, the United States accumulated record oil reserves, which were bought at low prices: 538.1 million barrels are located in storage facilities.
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