Only a few weeks ago, the data from the US economy was paiting a picture of recession, but now better data calm the markets and stocks went up. The sentiment quickly turned positive, after the economy showed that it is more resilient than first thought.
The price of Oil stabilized, prices of precious metals jumped up and bank share started a move higher. S&P index moved up 9% since February 11, 2016. Better than expected data helped Bank stocks to move higher as expectations are that FED will increase interest rates. DOW Transportation sector has been viewed as a barometer of the state of the economy and it has been up 14% since the begining of the year.
Investors are expecting better data from the Payrols on Friday. The better data will show that employment is stable and companies are hiring more workers, and that will create more inflation and higher interest rates.
Jr. Trader - S. Fuchedzhiev
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