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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, 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. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Live prices on most popular markets
You might be interested in…
Find out what charges your trades could incur with our transparent fee structure.
Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.