S&P 500 and Nasdaq reached an all-time high supported by the stability of the U.S. economy and assurances from Chinese authorities to help businesses affected by the coronavirus outbreak.The S&P 500 and Nasdaq rose on Wednesday to trade ATHs after positive comments by the Federal Reserve which encouraged investors. The investors in the stock markets were encouraged by the Chinese authorities who said they will assist the coronavirus stricken business to recover.This is after multinational companies listed in the S&P 500 and operating in mainland china halted their operations in the greater Asian region. Companies like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) have been affected greatly. As, for example, Apple has its assembly companies located in China.S&P 500 and Nasdaq Stock
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S&P 500 and Nasdaq reached an all-time high supported by the stability of the U.S. economy and assurances from Chinese authorities to help businesses affected by the coronavirus outbreak.
The S&P 500 and Nasdaq rose on Wednesday to trade ATHs after positive comments by the Federal Reserve which encouraged investors. The investors in the stock markets were encouraged by the Chinese authorities who said they will assist the coronavirus stricken business to recover.
This is after multinational companies listed in the S&P 500 and operating in mainland china halted their operations in the greater Asian region. Companies like Apple (NASDAQ: AAPL) and Alphabet (NASDAQ: GOOGL) have been affected greatly. As, for example, Apple has its assembly companies located in China.
S&P 500 and Nasdaq Stock Performance
The S&P 500 (SPX) leaped 15.86 points to close the day at 3,386.15. The market chart on the higher time frame has been making higher highs and higher lows for the past ten years. The stock is trading at all-time highs and expected to trade even higher.
However, the market has been consolidating slowly and the rate of uptrend decreased compared to the last years. This is attributed to the fears caused by the coronavirus outbreak which has affected negatively most companies listed in the S&P 500.
Moreover, the U.S. economy has been stabilizing as most companies continue operating and the demand of product increased since the Chinese market is in recession mode. Before the coronavirus outbreak in late last year, the U.S.-China trade war had dominated the talk but lately, the U.S. seems to be benefiting from the Wuhan coronavirus outbreak.
On the other hand, Nasdaq saw a +0.9% of 84.44 points to trade at 9,817.18. The stock market price has been rising for the last ten years and currently testing its all-time highs. The strong rise is greatly attributed to the US economy stabilizing and evolving with the technology change.
What Is the Catalyst Driving S&P 500 and Nasdaq Stock up?
The greatest contributing factor has been the review by the Fed officials who strongly believe the market is headed in the right direction. According to the minutes from the rate-setting Federal open market committee, the U.S. economy reported a much stronger state in January than projected.
The Feds rates remain at 1.50 -1.75% for consecutive months and have been giving investors the confidence that the market is stable. However, the Fed members are concerned with the Wuhan coronavirus outbreak and the threat it poses in the economy.
As the corporate earnings increase in general, favored by the right market condition, the S&P 500 and Nasdaq stocks will continue rising. Together with the support from the Chinese official to assist businesses affected by the coronavirus outbreak, they remain the best catalyst to push the stock market up.
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