Nasdaq Leads Stock Market Recovery
The U.S. stock market had a hard couple of weeks, but it looks like things are improving as the Nasdaq Composite is up by 1.46%, and the other indices are positive as well.
The stock market recovery we are seeing right now could indicate an early decline in tariff fears, but it is more likely a temporary correction. More tariffs are expected, particularly for the automotive industry, which is currently enjoying a one-month delay until tariffs are imposed there. When those hit, we expect the market to take a further dip than it has already.
The stock indices are all up today, with the Dow Jones gaining 1.14% and the S&P 500 adding 1.12%. These positive numbers come after days of decline. The small victory for the market that occurred on Wednesday evening before the market closed and the stocks started to improve, but that does not make up for nearly two straight weeks of decline.
The Dow Jones index, for example, had 44,627 points on February 20th. Today, the index is down to 43,006 points, experiencing very little reprieve in that period from its downward trend.
The Market Decline Is Not Over
We suspect that throughout Thursday the market will not simply remain high. Instead, we expect the indexes to fall again and lose much of their upward momentum. Many of the major tech stocks were up on Wednesday, which is what gave the Nasdaq Composite the lead over the other stock indices. Meta, Google, Microsoft, and Nvidia all showed signs of improvement. These stocks have been some of the biggest gainers in recent weeks, as much of the market has declined and these have improved.
As we continue to see tariffs take their toll on the stock market, investors should be looking to dependable stocks like these in the technology sector that can weather the economic storms and stay high through the crests and troughs of the stock market.
The Federal Reserve will be affecting stock prices with its Beige Book this week, and investors should also look out for a manufacturing reading from the Institute for Supply Management. We should continue to see tariff fears dominate and further questions rise from analysts about what Trump will do for the economy with his policies.
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