Febrero 24, 2018

US stock market rebounds after horror plunge yesterday

07 Febrero 2018, 04:35 | Martinez Canez

Dow Jones futures fall by 600 points after massive Monday sell-off


The S&P 500 is 1.9 percent higher with tech as the best-performing sector.

Market professionals warn that the selling could continue for a bit.

Some strategists view it as a healthy pullback after a rapid run-up in the start of the year and strong 2017 gains, and say the improving economic outlook is a positive for stocks overall. "It's not as if something like 2008 or financial Armageddon is coming".

Analysts are pointing to an employment report by the government as the main reason for the sudden sell-off. The increase was greater than anticipated and may lead to higher inflation, and the Federal Reserve could respond by raising interest rates, The Wall Street Journal reported. The markets have heated up in the past year, and some saw yesterday's downturn as a needed correction. Bond yields usually go down as demand rises, and thereby causing prices to go up.

"We've seen that optimism in small businesses, we've seen that optimism with investors and consumers - maybe too much so".

Even after Tuesday's gain, the S&P 500 is still down 6.2 percent from the recent record high it set on January 26.

"The market is probably trying to find a bottom", said Bill Lynch, director of investment at Hinsdale Associates.

A global stock market sell-off wiped billions of dollars from corporate values overnight.

"We have higher earnings due a lot to new tax rates, but a lower multiple", he said. "But fundamentally, we don't see any new news".

The rise in bond yields, fuelled by a surging United States economy and corporate earnings, has spooked traders, anxious that the Fed will raise borrowing costs more than the three times initially expected this year.

"It means that there are more investors with a negative view on the market in the long term", said Oh Hyun-seok, a market analyst at Samsung Securities. Shares of the companylost more than 3% after the miss.

White House press secretary Sarah Sanders downplayed the stock market drop as a part of a normal seesaw of the market but maintained that the overall direction of the economy under Trump is strong.

The moves comes as many analysts entered 2017 predicting a volatile year after markets have been in a euphoric state, gathering pace since the United Kingdom voted to leave the European Union and Donald Trump was voted as US President in 2016. He has stayed silent in the face of market gyrations over the past week.

The pan-European FTSEurofirst 300 index lost 2.50 percent and MSCI's gauge of stocks across the globe shed 1.55 percent. The FTSE is anticipating a 3.5% drop, while Nikkei falls by almost 5% demonstrating the knock-on effect of USA decline.

Otras noticias

Tendencias Ahora

Financial expert warns against securing 401K after Dow dip
As President Trump keeps reminding us on Twitter , the U.S economy also looks solid , with unemployment at a 17-year low. Higher Treasury yields make high-dividend stocks like utilities less appealing to investors seeking income.

Ramsey Hits Hat-trick As Arsenal Sink Everton
MF Henrikh Mkhitaryan , 10 - Three assists on your home debut is a great way to announce yourself at a new club. And if that's him [Aubameyang] not at 100 per cent, we have a player on our hands.

Zuma's Office Denies Claim He Plans to Fire Ramaphosa as Deputy
Whatever views anyone possesses about him, what can never be taken away from Zuma are his liberation and scandalous credentials. South Africa's president is elected by parliament, and the ANC's practice is to "deploy" members to government posts.

Everyone thinking about Tom Brady's retirement except him
But Kraft said in the documentary that he needed a clean break from anyone connected to Parcells. When Parcells coached the Giants from 1983-90, Belichick was one of his assistant coaches.

Chelsea's Cesar Azpilicueta: 'We are not letting Antonio Conte down'
Defeat on Monday in front of a frustrated Chelsea crowd would be, at the very least, uncomfortable. I know that winning the league, you feel you will get some leeway.

Some users are facing huge issue on iPhone X
While it's not a literal tiny creature wreaking havoc in the $999 device , it is equally troubling. According to Apple , a bug has been identified in the company's latest flagship, the iPhone X .

Apple says it sees 'strong demand' for replacement iPhone batteries
Apple said that with time, iPhone batteries become weak, hence, it slows down the CPU speed in order to elongate the battery life. However, if you have not yet received an email, the company on its official blog asked its customer to get in touch with them.

Lake County reports 7 flu-related deaths this season
A small Canadian study released last week indicated that the current vaccine was only 17 percent effective against H3N2. There's an extensive variety of symptoms influenza-diagnosed people can present; they go from mild to severe.

Illini travel to No. 17 Ohio State
It's going to be a pretty insane atmosphere and we just have to be ready to go". "When we get in trouble, we quit passing". But February will determine just how seriously the Buckeyes can contend this season.

Up To A Foot Of Snow Coming Wednesday
Temperatures will also be cold , with temperatures around 17 degrees by late afternoon and wind chills dropping to around zero. This will keep snow and wintry mix amounts to a minimum for the I-95 corridor, with a coating to 1-inch being the best bet.