Today's rally in US equities is led largely by the technology sector, followed by energy and industry. Yesterday's Asian session and the already concluded European also recorded good growth. Bond yields hover around the one-month high.
After some rotation earlier this week from growth stocks to value stocks, NASDQ is on track to record an increase for the first of four days. Apple's new and cheap iPhone has given analysts a good reason to remain bullish on the company and the industry. US President Donald Trump made another tweet to Jerome Powell to cut interest rates to zero or less. At the same time, China announced a reduction in tariffs on some US goods in an effort to further ease tensions.
Approaching a trade deal, a dovish Fed, lower interest rates and good company forecasts create the precondition for a long rally in the US markets.
Shares have continued to recover since the beginning of the month, fueled by fresh monetary stimulus from the ECB, which is expected to be announced on Thursday. Markets are also hopeful for a similar move by the Fed next week. China-US sentiment is also maintaining market growth. However, many investors remain reserved and think they will be disappointed.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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