Wall Street ends trading day on positive note after more volatility
Wall Street ends on a high note after a wild day of trading.
Wall Street is up after a volatile day of trading. From dizzying highs to crashing lows, the US stock market had an eventful day of trading.
How oil hurt the US markets
The US markets suffered early in the day when low oil prices led to investor selloff. West Texas Intermediate (WTI) prices fell to $46 a barrel amid concerns about overproduction of the commodity and less demand for crude.
The oil excess comes as OPEC and Russia promised to limit production to reduce excess production. However, Bjornar Tonhaugen, head of oil market research at Rystad Energy, said that the cut in the commodity production won’t be enough to stem the commodity surplus.
‘The cuts themselves are not sufficient to create a sustainable turning point in oil prices. It's just enough to stabilise (US oil prices) in the low-$50s’, said Tonhuagen.
Worries about the Fed meeting and optimism of tech stocks
In addition to the oil overproduction, investors are still worried about the upcoming US Federal Reserve meeting. The Fed’s meeting will likely lead to rate hikes, which many critics, especially US President, Donald Trump, oppose.
‘Feel the market, don't just go by meaningless numbers. Good luck!’ tweeted Trump in his latest tirade against the Fed.
Despite the downturn early in the day, tech stocks were up as Google and Facebook performed well. Some financial experts like, Bruce McCain, chief investment strategist at Key Private Bank, see the volatility as concern that should be short-lived.
‘Clearly, it's a time of uncertainly both here and overseas, but given the strength of the economy, it's going to take some time until the economic backdrop supports a bear market. It's about managing your anxiety and waiting long enough to find out that, hopefully, the news isn't so bad,’ said McCain.
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