- DJIA, +0.43% gained 124.99 points, or 0.4%, to 28,859.44.
- The S&P 500 index added 10.26 points, or 0.3%, to 3,283.66.
- Nasdaq Composite put on 23.77 points, or 0.3%, to 9,298.93.
US benchmarks on Thursday rallied into the closing bell with upbeat earnings, relatively robust US data and a somewhat encouraging outcome of the WHO emergency meeting on the coronavirus threat to the human race. The standout gainer was the Dow Jones Industrial Average which recovered around 390 points to close higher on the day.
The Dow Jones Industrial Average, DJIA, +0.43% gained 124.99 points, or 0.4%, to 28,859.44. The S&P 500 index added 10.26 points, or 0.3%, to 3,283.66 while the Nasdaq Composite put on 23.77 points, or 0.3%, to 9,298.93.
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Breaking: Coronavirus is an international health emergency
However, the outcome for the week is less promising and all three benchmarks are dragging their heels into the closing sessions down with the Dow on pace to decline 0.5%, the S&P 500 0.4% and the Nasdaq is is looking at a potential 0.2% loss as figures stand.
However, a recovery into the weekend could be on the cards should the market’s conclude that the virus is under control and that the Federal Reserve is certainly not ina position to upset the free ride that stocks have enjoyed since their intervention last year. At the same time, recession forecasts have been dialled back as well:
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US recession risks have eased significantly after being elevated mid-2019 – ANZ
US data in focus
As for US data, Gross Domestic Produce Q4 was a touch stronger than expected, holding steady at 2.1% y/y, but the deflator disappointed, rising a modest 1.4% y/y from 1.8% in Q3.
“The private domestic demand components of GDP softened. Waning fiscal stimulus, capacity constraints and trade policy are weighing on growth. Below-target inflation will keep the bias for interest rates stable to lower as the Fed focuses on getting inflation up. Yesterday the Fed held the policy rate in a unanimous decision (with some technical tweaks). It was noted that the coronavirus outbreak would hit the Chinese economy and could spill wider, but that it was too early to judge the impact,”
– analysts at ANZ Bank argued.
DJIA levels
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