- The S&P 500 SPXclimbed 1.1% to end near 2,855.
- Dow Jones Industrial Average added a good 218 points to end around 25,964.
- The Nasdaq Composite climbed 1.4% to close around 7,839.
Stocks bounced back from its lows on Thursday after the Fed’s projections for interest rates this year was zero. U.S. stocks ended higher on Thursday following a surge in tech shares.
In political news, analysts at ANZ Bank explained that US President Trump has tweeted that the US should recognise Israel’s authority over Golan Heights, in a marked shift in the US standpoint. Israel seized the territory from Syria more than 50 years ago. The analysts also explained that UK PM May is once more in Brussels, this time trying to agree an extension to the March 29 Brexit deadline:
“But Europe’s position seems to have hardened, with various politicians including French President Macron indicating that the Withdrawal Agreement must be passed for an extension to be granted. Sterling came under pressure. This week’s EU Summit is unlikely to be the final word. There could be an emergency EU Brexit Summit next week and the UK Parliament is likely to vote on the Withdrawal Agreement again next week. It is important whether PM May can extract any further EU assurances over the Irish backstop. Whilst the risk of a hard Brexit has resurfaced, if the Agreement fails again next week, Parliament is likely to seize control of the process. That could raise the risk of a UK general election or second referendum, which could be sufficient for the EU to grant a longer extension. There is also the (slim) possibility that Article 50 could be revoked.”
US data:
The March Philly Fed survey improved, helped higher by new orders and shipments. However, the employment sub-category, the 6-month-ahead outlook for activity and capex plans all fell. Meanwhile the 0.2% m/m rise in the US leading index for February points to moderating growth ahead and is consistent with the future component of the March Philly Fed survey. The 3m average of the leading index is now flat, versus +0.7% for the same period last year.
DJIA levels:
The DJIA has been unable to sustain territory above the 26000 level having scored a 26109 on Tuesday. A continuation to the downside will open a move to 25186 being the 23.6% retracement of the late Dec swing lows to late Feb swing highs. On the upside, R3 at 26829 is a key target.
Support levels: 25670 25413 24962
Resistance levels: 26121 26378 26829
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