Wall Street rallies on strength of tech stocks

The US markets are up after a day of steep decline.

IG Analyst

Publication date : 2018-12-10T21:55:00+0000

Wall Street sign

Source: Bloomberg

Wall Street rallied at the end of a trading day after a 500 point drop. The comeback in the US markets comes on the strength of tech stocks.

Wild day of trading

The trading day started with a downturn in stocks as investors worried about the US-China trade impasse. The recent arrest of Chinese tech company executive, Meng Wanzhou, for violating US sanctions has led to more tension between the two nations.

There was also the worry about Brexit and how the UK leaving the European Union would affect he European markets. Since UK Prime Minister, Theresa May, cancelled the Brexit vote, investors were panic selling. However, shares in technology companies rose, which erased the earlier losses of the trading day. Shares of Facebook and Google went up. Even Apple had an uptick after having sales of some its iPhones halted.

December is a volatile month for US markets

Despite the positive news, financial analysts warn that more unprecedented unpredictability in the markets is expected. Liz Ann Sonders, chief investment strategist at Charles Schwab, believes that there was no one set reason for the late-day rally of tech stocks helping he US markets avoid another day of steep losses.

‘Higher volatility and wider intraday and intraweek ranges are likely par for the course these days and momentum can shift without an easily-defined reason. A few key large cap tech stocks caught a bid today and that helped rally the Nasdaq off the day’s lows’, said Liz Ann Sonders, chief investment strategist, at Charles Schwab & Co.

The US markets will become more volatile as the US Federal Reserve will have its meeting later this month. Whether or not the Fed raises or stabilizes interest rates, US stocks could be going on another wild ride.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer

Disclaimer:

All forms of investments carry risks and trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits, so please ensure that you fully understand, and are aware of, the risks and costs involved. Refer to the Risk Disclosure Statement and Risk Fact Sheet.

IG Asia Pte Ltd (Co.Reg.No. 200510021K) is regulated by the Monetary Authority of Singapore and holds a capital markets services licence for dealing in capital markets products that are over-the-counter derivatives contracts and is an exempt financial adviser.

IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

This advertisement has not been reviewed by the Monetary Authority of Singapore.