Bulls regained their strength on Wednesday, as stocks retraced Monday's sell-off following lower opening of the trading session. The S&P 500 index extends its short-term consolidation despite trade war, interest rate hikes fears. So, is medium-term bullish case valid again?
U.S. stocks tumbled Monday as President Donald Trump continued his criticism of Amazon, sending those in the technology and consumer discretionary sectors lower. The selling also comes ahead of the Trump administration's plan to unveil this week the list of Chinese imports targeted for US tariffs. The list of $50 billion to $60 billion worth of annual imports is expected to target "largely high-technology" products.
Stocks extended their short-term losses on Wednesday, as they retraced most of last week's Friday's rally. The broad stock market failed to continue its rebound from February 9 low despite technology stocks reaching new record highs.
The robust U.S. jobs report on Friday managed to offset concerns of a trade war, at least for now. The 313,000 additional jobs took economists and markets by surprise as the figure exceeded even the highest expectations of 300,000 noted in a Reuters survey.
Stocks rallied on Friday, as investors reacted to better-than-expected monthly Nonfarm Payrolls number release. The broad stock market retraced its late February move down, while technology stocks reached new record highs.
The Nasdaq 100 has been lurking within 2% of its all-time high since late February and Friday’s monster gain of 1.8% finally achieved the inevitable.February’s Consumer Price Index data is due out Tuesday at 7:30 a.m. Central. The Core read that excludes food and energy is the most closely watched data point. Industrial Production, Fixed Asset investment and Retail Sales are due out of China on TuesdayEvening.
Wednesday's trading session was overall bullish, as the main stock market indexes closed between -0.3% and +0.3% vs. their Tuesday's closing prices following much lower opening in reaction to Gary Cohn's resignation's news.