US stocks rebounded, Boeing rose 14.4percent, and Dow rose 2.3percent

category:Finance
 US stocks rebounded, Boeing rose 14.4percent, and Dow rose 2.3percent


The Dow Jones Industrial Average closed up 580.25 points, or 2.3%, at 25595.80 on Monday. It was also the Dows best day since June 5. The S & P 500 rose 1.5% to 3053.24, while the Nasdaq composite rose 1.2% to 9874.15.

Dow component Boeing shares rose 14.4%. The U.S. Federal Aviation Administration (FAA) on Monday began a three-day certification flight test of Boeing 737max, which investors believe is a key step out of Boeings serious corporate crisis.

Retail stocks gap and Coles rose 3.7% and 10.1% respectively. Apple shares rose 2.3%, while Facebook closed up 2.1% after recovering from earlier losses.

Net purchases of S & P 500 e-mini contracts rose to 2.06227 million in the week ended June 23, the highest level since 2007, according to the US Commodity Futures Trading Commission. With the previous rally in US stocks approaching record highs, the pace of short covering is also accelerating. Moreover, the percentage of short interest as a percentage of SPDR S & P 500 etftrust has fallen from 6.7% at the end of May to 4.9% at the end of June.

Several states in the United States are considering gradually tightening restrictions

In the past week novel coronavirus pneumonia cases have been rising, and more and more states are tightening restrictions. This also led to continued weakness in the US stock index last week, with the Dow down 3.3%, the S & P 500 index down 2.9%, and the Nasdaq composite index down 1.9% last week. With the surge in novel coronavirus pneumonia, investors are beginning to worry that the pace of recovery in the US may be too fast. Ian Shepherdson, an economist at Pantheon macroeconomics, points out: we suspect that most people have been assuming that the economy as a whole will maintain a smooth rebound, which now seems unlikely. It will take at least a month or so before we can see that the number of cases and the number of inpatients may drop significantly under the new restrictions, thus allowing some areas with the current epidemic situation to reopen again. This means that the economy will have a very weak start in the third quarter.

California announced on Monday that bars, restaurants and other places would be closed again, and he hoped that Californians would continue to be vigilant, while New York governor Cuomo also mentioned the possibility of re imposing restrictions on public places such as restaurants.

Powell: there is still great uncertainty in the economy, but the recovery is gradually taking place

Output and employment are still far below pre epidemic levels, and the path of economic development is very uncertain, which largely depends on our success in curbing the epidemic. The economy cannot fully recover unless people are convinced that it is safe to return to various activities. And the path to recovery will also depend on policy action at all levels of government to provide relief and support recovery when needed. A lot of companies are opening their doors, hiring is going up, spending is going up, Powell said. Employment growth, consumer spending rebounded strongly in May. We have entered an important new stage, and we are ahead of schedule. This rebound in economic activity is welcome, but it also presents new challenges, especially the need to control the spread of the epidemic. In response to the epidemic, the Federal Reserve has implemented a variety of rescue programs and made direct loans where needed. In the hope of maintaining market liquidity, Powell added: in March, we reduced the policy rate to near zero, and we hope to keep the interest rate at that level until we are confident that we can get out of the current epidemic situation and are hopeful of achieving the maximum employment and inflation stability goals. The Federal Reserve will closely monitor developments and prepare appropriate adjustments to support our goals. Source of this article: Yang Bin, editor in charge of the first finance and Economics_ NF4368

Output and employment are still far below pre epidemic levels, and the path of economic development is very uncertain, which largely depends on our success in curbing the epidemic. The economy cannot fully recover unless people are convinced that it is safe to return to various activities. And the path to recovery will also depend on policy action at all levels of government to provide relief and support recovery when needed. A lot of companies are opening their doors, hiring is going up, spending is going up, Powell said. Employment growth, consumer spending rebounded strongly in May. We have entered an important new stage, and we are ahead of schedule. This rebound in economic activity is welcome, but it also presents new challenges, especially the need to control the spread of the epidemic.

In response to the epidemic, the Federal Reserve has implemented a variety of rescue programs and made direct loans where needed. In the hope of maintaining market liquidity, Powell added: in March, we reduced the policy rate to near zero, and we hope to keep the interest rate at that level until we are confident that we can get out of the current epidemic situation and are hopeful of achieving the maximum employment and inflation stability goals. The Federal Reserve will closely monitor developments and prepare appropriate adjustments to support our goals.