Wall Street finds a bid again across the benchmarks, but markets fragile


  • The Dow Jones Industrial Average, DJIA, climbed 371.12 points.
  • The S&P 500 index added 54.11 points, or 1.9%, to close at 2,938.72.
  • Nasdaq Composite Index COMP, added 176.33 points to finish at 8,039.16.

US stocks were finding some traction again on Thursday in the third day of recoveries across the benchmarks as bargain hunters stepped in following better than expected Chinese trade data as well as solid US jobs numbers. Following a correction in European markets, the Dow Jones Industrial Average, DJIA, climbed 371.12 points, or 1.4% to 26,378.19, the S&P 500 index added 54.11 points, or 1.9%, to close at 2,938.72 and the Nasdaq Composite Index COMP, added 176.33 points to finish at 8,039.16, a rise of 2.2%.

Global data impacts

On the data front, the ere was good news all around, starting with the Chinese stronger than expected trade data from China which helped alleviate market concerns of slowing global trade. "China export data was strong with the value of July exports up 3.3% y/y in USD terms. Import data was better than expected, falling 5.6% y/y. Annual growth in China’s imports has been negative every month this year except April," analysts at ANZBank explained. 

As for US data, the number of initial claims from those jobless in the US fell to 209k vs estimates of 215k. "The number of people continuing to make claims was down from 1699k to 1684k and also below expectations. This stronger unemployment data may make it more difficult for the Fed to justify further interest rate cuts but is unlikely to outweigh their inflationary concerns," analysts at ANZ explained. 

Trade wars still a threat

While there has been a series of better data, the trade wars are still very much a threat. In recent trade, post the close on Wall Street, there are reports that the White House is considering ending China talks and that there will sanctions if Beijing commits to the Hong Kong protest crackdown. 

DJIA levels

The DJIA index found support on the 200-DMA on Wednesday and has since found a base in the 26000s, again. A run back to the moving averages will bring the 20-day moving average into focus up at 26657.  On a break to the downside, bears can look to the June swing lows down at 24680 on further declines. The 200-DMA remains a line in the sand and on the upside, an extension of the correction opens the 78.6% Fibo target of 26103.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD crashes to new 2020 lows amid ECB dovishness, coronavirus fears

EUR/USD is trading below 1.1050, at the lowest since early December. ECB President Christine Lagarde refrained from acknowledging the recent economic improvement. Fears of the spread of the coronavirus are weighing on markets.

EUR/USD News

GBP/USD pressured toward 1.31 amid risk-off mood

GBP/USD is trading around 1.31, off the highs. Coronavirus headlines are sending traders to the safety of the US dollar. Speculation about the next BOE move is rife.

GBP/USD News

Top 3 Price Prediction Bitcoin, Ethereum, XRP: Set for a dive before the next big bull market

The first initiative comes from WhatsApp. Users of Facebook’s popular instant messaging application will be able to exchange Ether among themselves and other tokens that function over the ERC20 protocol.

Read more

Gold Bears challenge 100-period SMA support on 4-hourly chart

Gold failed to capitalize on the overnight intraday bounce and started retreating from the vicinity of a one-week-old ascending trend-channel support breakpoint.

Gold News

USD/JPY drops to fresh eight-day lows near 109.50

USD/JPY extends losses and trades close to an eight-day low near 109.50 in a relatively risk-off environment, with the media headlines full of the coronavirus as it spreads internationally. Bears can look to the golden ratio around mid-108s.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures