U.S. stocks closed higher, the Dow rose 1.2percent, and the NASDAQ hit its worst performance in 9 years

category:Finance
 U.S. stocks closed higher, the Dow rose 1.2percent, and the NASDAQ hit its worst performance in 9 years


*Small non farm exceeded expectations, the dollar fell sharply, and gold rebounded

On Wednesday, House Speaker Nancy Pelosi and Treasury Secretary Manuel mnuchin failed to reach an agreement on a new round of stimulus bill negotiations, and U.S. stocks retreated some gains in the day. By the end of the day, the Dow Jones industrial average was up 329.04 points, or 1.2%, to 27781.70 points; the standard & Poors 500 index was up 0.8%, or 27.53 points, to 3363.00; the Nasdaq composite index was up 0.7%, or 82.26 points, to 11167.51.

Most sectors of the S & P 500 index closed up, with finance and consumer goods up 1.2%; utilities, materials and information technology rose more than 0.9%; but industry and energy fell 0.2%.

U.S. stocks were active in the early trading, full of expectations for the re opening of the White House and the house of Representatives on the stimulus bill. The small non farm data that exceeded expectations also played a role in boosting. The Dow once rose more than 550 points. Unexpectedly, in the afternoon, Pelosi and mnuchin respectively said that the negotiations have made progress and are confident of reaching an agreement, but it still needs time to discuss and vote. The Dow then narrowed its gains.

In terms of individual stocks, financial and tourism stocks rebounded collectively, with Goldman Sachs up more than 2%, Citigroup up 1.6%, JP Morgan Chase up 0.94%, Morgan Stanley up 2.32%, Bank of America up 1.3%, Wells Fargo Bank up 1.03%; Norwegian Cruise Line rose more than 3%, Boeing also rose 1%.

Most of the big tech stocks were up, with apple up 1.51%, Amazon 0.12%, NYSE 1.33%, Google 0.03%, Facebook 0.04% and Microsoft 1.48%.

Qinhuai data, an operator of China general stock data center, rose 20.22% to $16.23 on the first day of its listing on the Nasdaq Stock Exchange. Its offering price was $13.50, and its market value reached $5.8 billion.

Palantir, the big data unicorn, landed on the NYSE at $7.25 and closed up more than 34.21% at $9.7 on its first day of listing.

Despite the strong performance of US stocks in recent trading days, the three major indexes recorded their first monthly decline since March in September. The Dow, the S & P 500 and the NASDAQ fell 2.28%, 3.92% and 5.16% respectively, the worst September performance since 2011. Part of the reason is the collective correction triggered by technology stocks in early September. Among them, faang and other technology giants performed poorly. In September, Tesla fell nearly 14%, apple and Facebook fell more than 10%, Amazon 8%, Netflix 5.5% and Microsoft 6.7%.

Analysts said that the recent rally in US stocks has not completely eliminated investors worries. In particular, the simultaneous effects of uncertainties such as the approaching election, repeated epidemic situation and severe economic recovery situation are aggravating the possibility of further stock market turbulence.

After the first tit for tat debate between U.S. President trump and Democratic candidate Biden, some analysts are worried that the change of election situation may continuously impact the market. Daniel Deming, head of KKM financial, said: there are a lot of things that need to be addressed in the first election debate, and it is clear that these things will not end with the end of the election, and short-term market volatility may not decrease after this debate, which is more likely to create greater uncertainty.

Some market strategists believe that the uncertainty before the election is the main adverse factor in the market before the end of the year, and no matter who is elected, there will be corresponding risks. Some investors worry that Bidens victory will lead to higher corporate taxes and stricter regulations, but it may ease concerns about trade frictions.

Tom Lee, head of research at fundstrat, believes that one of the things investors have to consider is when the worst could happen and how the market will price when it happens. Now, although the stock market fell back in September, it does not think it will continue to fall.

In September, small non farm exceeded expectations, and the US dollar fell sharply in the short term

In terms of items, the number of professional and commercial service employment increased by 78000 in September, and 66000 in August; the number of employment in financial service industry increased by 29000 in September and 11000 in August; the number of employment in trade, transportation and public utilities increased by 186000 in September and 58000 in August. Manufacturing employment increased by 130000 in September and 9000 in August. Construction employment increased by 60000 in September and 28000 in August. According to ADP employment data, the current employment market continues to gradually recover. In September, the size of enterprises in most industries increased, but the employment growth of small enterprises continued to slow down. After the small non-agricultural data was released, the market expected that the non-agricultural data released on Friday would add 800000 people, slowing down from 1.37 million in August, and the unemployment rate was expected to drop slightly to 8.2%. After the release of the better than expected small non farm data, the US dollar index fell sharply in the short term, once falling to a one week low of 93.67. After the short-term rise of US $12, spot gold reached a short-term high of US $1901, and then fell back to US $1883 / oz.

In terms of items, the number of professional and commercial service employment increased by 78000 in September, and 66000 in August; the number of employment in financial service industry increased by 29000 in September and 11000 in August; the number of employment in trade, transportation and public utilities increased by 186000 in September and 58000 in August. Manufacturing employment increased by 130000 in September and 9000 in August. Construction employment increased by 60000 in September and 28000 in August.

According to ADP employment data, the current employment market continues to gradually recover. In September, the size of enterprises in most industries increased, but the employment growth of small enterprises continued to slow down. After the small non-agricultural data was released, the market expected that the non-agricultural data released on Friday would add 800000 people, slowing down from 1.37 million in August, and the unemployment rate was expected to drop slightly to 8.2%.