Chinanews client Beijing March 26 (Xie Yiguan) On the 25th (Wednesday), U.S. stocks achieved "two consecutive gains" for the first time since March, but continued to play "roller coaster" during the session. The Dow intraday amplitude was nearly 7%. The trend is "shocking step by step." What happened to US stocks last night (Beijing time)?
The Dow traded intraday.
US stocks reproduce roller coaster market, Dow achieves "two consecutive gains"
On March 25, the three major US stock indexes closed mixed, with the Dow rising nearly 500 points and returning to 21,000 points.
At the close, the Dow rose 495.64 points, or 2.39%, to 21,200.55 points; the S & P 500 rose 28.23 points, or 1.15%, to 2475.56 points; the Nasdaq fell 33.56 points, or 0.45%, to 7384.3 points.
During the session, long and short US stock markets fought fiercely, stock indexes fluctuated widely, playing a "roller coaster".
After the opening of the three major U.S. stock indexes, the Dow rose rapidly by more than 3%, but then quickly fell, and then steadily rose. The increase continued to expand. The Dow once rose more than 6% and rose more than 1,300 points. Suddenly diving, the Dow fell more than 800 points, the increase narrowed sharply, and the intraday amplitude was nearly 7%.
On the disk, Boeing surged 24.25%, the largest increase in history. Sources say the U.S. Senate's package of aid includes the allocation of billions of dollars to Boeing.
Technology stocks dived late, as foreign media quoted people familiar with the matter as saying that Apple had discussed delaying the release of the 5G iPhone for months. Apple's stock price plummeted in the end, eventually closing down 0.55% to $ 245.52, with intraday gains of more than 4%. Qualcomm and AMD shares also followed Apple's diving late, falling more than 3%, and Intel fell more than 2%.
Apple intraday chart.
Carding found that the Dow and the S & P 500 have achieved “two consecutive gains” for the first time since the U.S. stock market ’s plunge mode began in March. To some analysts, this has great significance for the market, meaning that the S & P 500 It broke the downtrend range in recent weeks.
Has US stocks bottomed out or reversed, or has it rebounded briefly?
Saut Strategy analyst Andrew Adams is optimistic about the recent outlook for the US stock market. But he also warned that from the stock market disasters of 1987 and 2008, a sharp rebound does not necessarily signal that the market has bottomed. "Overall, there are enough signs that the market has bottomed out or is nearing the bottom, at least recently."
Quincy Krosby, a financial strategist at Prudential, said, "You can't say that (the market) will reverse next week or next because of this rebound. The turning point will depend to a large extent on monetary and fiscal responses. Can we avoid a long-term economic downturn, and even if the stimulus plan is passed, there is a time lag in its implementation.
On the 25th, the White House and the Senate announced an agreement on a US $ 2 trillion economic stimulus plan designed to combat the effects of the new crown pneumonia epidemic. After the two parties in the Senate reach agreement on a stimulus plan, the House will seek to vote on Thursday or Friday.
"I urge the House of Representatives to pass this vital bill and submit it to me for signature as soon as possible," U.S. President Trump said at a White House press conference on Wednesday afternoon. He also said that Congress is very close to passing a stimulus bill, a stimulus bill The size of the package is as high as $ 2.2 trillion.
US Treasury Secretary Mnuchin also said at a press conference that the stimulus plan will release 4 trillion US dollars for the Federal Reserve and the Treasury Department. This round of stimulus should cover 3 months.
However, there are still doubts about whether the US Congress can quickly pass this stimulus plan. According to US media reports, Senator Bernie Sanders said the bill would be put on hold unless additional conditions are added to the $ 500 billion in corporate aid funding.
On March 12, local time, security officers in the US Senate and House of Representatives in Washington, DC, announced that Capitol Hill will be temporarily closed to tourists due to the new crown pneumonia epidemic. Photo by Shaoxing Ting, China News Agency
U.S. releases unemployment data as new market focus
According to real-time statistics from Johns Hopkins University in the United States, as of 6:30 am on March 26, Beijing time, the cumulative number of confirmed cases of new coronary pneumonia worldwide exceeded 460,000, and the cumulative deaths exceeded 21,000. A total of 65,285 confirmed cases and 926 deaths occurred in the United States. The outbreak in New York State was the worst, with more than 30,000 confirmed cases.
Affected by the epidemic, former Federal Reserve Chairman Ben Bernanke said in an interview with US media on March 25 local time that the US economy will experience a very serious recession and then it will rebound fairly quickly. Compared to the Great Depression, the current situation is more like a big "blizzard."
Yousef Abbasi, director of equities at the US agency INTL FCStone, said people must stick to the notion that the longer the outbreak lasts, the more people will be unemployed. Therefore, it will be very difficult for the market to achieve a sustainable rebound at this point.
At present, the market is quite concerned about the employment data to be disclosed on March 26th, local time in the United States. The data released before the opening of the US stock market on the 26th has become an indicator of how much the epidemic will affect the US labor market. one. Barclays estimates that 2 million new jobs will be lost in the United States, while Citibank is expected to lose 4 million more.
On the 26th, how US stocks will perform will take time to verify. (Finish)