The Friday session at Wall Street ended with increases in the main indexes, thus continuing to grow this week. Investors analyze the changing global commercial landscape, and the main technology companies have gained value.
Dow Jones Industrial at the closure increased by 0.05 percent, to 40.113.50 points S&P 500 at the end of the day increased by 0.74 percent and amounted to 5,525.21 points Nasdaq Composite increased by 1.26 percent Up to 17,382.94 points The index of companies with medium capitalization Russell 2000 is growing by 0.01 percent. and is 1,957.62 points The VIX index drops by 6.16 percent, to 24.84 points
The main indexes recorded strong increases this week. S&P 500 increased by over 4 percent, while Nasdaq increased by more than 6 percent. Dow fell less, noting a weekly increase of over 2 percent.
In recent weeks, shares prices have grown up rapidly, because investors have tried to understand the severity of customs, introduced by President Donald Trump for the first time on April 2. Extreme trade messages have increased volatility.
China announced on Thursday that there are no talks with the USA about the potential trade agreement. It happened after the US apparently softened their position on trade relations with China.
On Friday, Timek published Trump's comments, in which he stated that he would consider a total victory if the US introduces a high duties at 20 to 50 percent. for foreign goods for a year.
However, his Tuesday comments published on Friday also said that the president expects ads for many contracts to appear in the next three to four weeks.
In addition, Trump's statement directed to the reporters from Air Force One led to the confusion that he would not endure duties to China until “they give us something”.
“Progress in American -Chinese relations will probably be slow and bumpy, but in a short term a positive effect may be given to reports on trade agreements with other countries,” said Hani Redha, a portfolio manager of Pinebridge Investments. In his opinion, this may be enough to maintain markets until economic data deteriorates.
After all, looking to the future, Jay Hatfield, founder and IT director in Infrackap, is an optimist and believes that the worst uncertainty related to tariffs is already behind us.
“Confusion around whether talks with China are actually underway or not, weakened the market a bit,” he said in an interview with CNBC.
Hatfield believes that the key factor driving markets next week will be the profits of large scaling companies, such as Microsoft
and Amazon.
An index of sentiment among American consumers, developed by the University of Michigan, fell to 52.8 points in April. (initially: 50.8 points) with 57.0 points A month earlier – it was given in the final calculation. This is the lowest reading since the late 1970s.
The inflation expected by the respondents in April in the horizon of the year increased to 6.5 percent. (at most from 1981) compared to 5.0 percent a month earlier (6.7 percent initially), in the long run increased to 4.4 percent. (b/z) compared to 4.1 percent previously.
Traders value the chances that the federal reserve will reduce interest rates earlier than expected and evaluate mixed signals on US-China trade relations.
Christopher Waller from the FED board indicated that he would support the cutting of the feet in the US if the aggressive tariffs imposed by the administration of President Donald Trump hurt the work market.
On the oil market, contracts for WTI on May increase by 0.65 percent. up to USD 63.20 per barrel, and June Futures on Brentures grow by 0.68 percent. up to 67.00 USD/B. (PAP Biznes)
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