stock markets

Global stocks gain with Wall Street again at fresh records

Agence France-Presse, Agence France-Presse
Global stocks gain with Wall Street again at fresh records

Pigeons on a light pole in Times Square near the Nasdaq Stock Market August 24, 2015 in New York. US stocks opened down more than five percent Monday before recovering somewhat as a global rout worsened following another big pullback in Chinese stocks. Shortly after the open, the Dow was off more than six percent and the Nasdaq more than eight percent in panic selling that approached levels that could trigger exchanges to employ circuit-breakers to halt trading. US stocks soon rallied from those depths, but remained headed for a fifth straight day of losses as leading bourses in Europe dropped more than four percent. AFP PHOTO/DON EMMERT (Photo by DON EMMERT / AFP)

The S&P 500 and Nasdaq again finish at all-time highs on Wednesday, September 2, with the tech-rich Nasdaq closing above 12,000 for the first time

Wall Street stocks powered to new records again on Wednesday, September 2, as investors continued to shrug off lackluster United States economic data amid optimism over coronavirus therapeutics and vaccines.

The S&P 500 and Nasdaq again finished at all-time highs, with the tech-rich Nasdaq closing above 12,000 for the first time.

US shares benefited from what analysts have called a “fear of missing out” on further gains amid broad investor optimism.

European stocks also had a good day, with London, Paris, and Frankfurt all up more than 1%.

“Global stocks have been rising on the back of the steadily improving sentiment on Wall Street and elsewhere over the past few weeks amid falling COVID-19 death rates, falling new cases in the United States, and hopes that an effective vaccine will soon be approved,” said Fawad Razaqzada at ThinkMarkets.

“Meanwhile, improving manufacturing activity in China, the US, and eurozone has fueled hopes that the recovery is well underway across the world’s key economic regions.”

But a report on Wednesday from private payrolls firm ADP said the US private sector added 428,000 new jobs in August, a third of the amount expected by analysts. The data comes ahead of the much-anticipated government employment report for August on Friday, September 4.

The Federal Reserve also offered a cautious appraisal of the US economy, noting “rising instances of furloughed workers being laid off permanently as demand remained soft,” especially in the hard-hit services industries.

Home and vehicle sales were strong but “many districts noted a slowing pace of growth in these areas, and total spending was still far below pre-pandemic levels,” the Fed said in its beige book survey of economic conditions. 

IG analyst Chris Beauchamp noted that, “The apparent disconnect between markets and the real world gets wider and wider, fueled by low interest rates, the prospect of more easing, but also the hope that the overall situation will continue to improve.

“Markets continue to seek the positive and ignore the negatives, but it is odd to see such relentless positivity in US markets when the pandemic has yet to subside, the economic impact is only just being felt and we have a US presidential election just a few weeks away.”

But Art Hogan, chief market strategist at National Securities, said optimism about coronavirus remedies had boosted sentiment, along with broad confidence that Washington will eventually reach a deal on fiscal stimulus “although that’s getting frustratingly slow.”

Key figures around 8:50 pm GMT
  • New York – Dow: UP 1.6% at 29,100.50 (close)
  • New York – S&P 500: UP 1.5% at 3,580.84 (close)
  • New York – Nasdaq: UP 1% at 12,056.44 (close)
  • London – FTSE 100: UP 1.4% at 5,940.95 (close)
  • Frankfurt – DAX 30: UP 2.1% at 13,243.43 (close)
  • Paris – CAC 40: UP 1.9% at 5,031.74 (close)
  • EURO STOXX 50: UP 1.8% at 3,337.77 (close)
  • Tokyo – Nikkei 225: UP 0.5% at 23,247.15 (close)
  • Hong Kong – Hang Seng: DOWN 0.3% at 25,120.09 (close)
  • Shanghai – Composite: DOWN 0.2% at 3,404.80 (close)
  • Euro/dollar: DOWN at $1.1857 from $1.1912 at 9 pm GMT on Tuesday, September 1
  • Dollar/yen: UP at 106.16 yen from 105.96 yen 
  • Pound/dollar: DOWN at $1.3349 from $1.3384
  • Euro/pound: DOWN at 88.78 from 89 pence
  • Brent North Sea crude: DOWN 2.5% at $44.43 per barrel
  • West Texas Intermediate: DOWN 2.9% at $41.51 per barrel

– Rappler.com

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