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- Dow Jones spikes over 500 points as investors cheer positive outlook for the economy
- Stocks are now higher for the week after a tumultuous start of trading on Monday
Dow Jumps More Than 500 Points Thursday
The Dow Jones Industrial Average advanced over 500 points on Thursday as investors increased their optimism toward the economic outlook. The solid swing to higher grounds pushed the 30-stock benchmark into the green for the week.
Thursday’s performance for the Dow, coupled with its 340-point rise a day earlier, lifted the index to its best two-day rally in over six months. The driving force behind the strong move yesterday was elevated risk appetite for stocks on the back of decreasing fears of an economic slowdown.
The blue-chip Dow Jones added 506.50 points, or 1.48%, to finish Thursday’s market action at 34,764.82. The broader S&P500 gained 53.34 points, or 1.21%, to close at 4,448.98. The Nasdaq Composite advanced 155.40 points, or 1.04%, to end the day at 15,052.24.
Stocks Poised to Close the Week in the Green
The Dow Jones Industrial Average had its strongest single-day performance since July. Among individual stocks, Salesforce shares surged 7.2% after the software company raised its full-year sales forecasts. Stocks in the energy sector climbed broadly along with rising oil prices. Shares of banks rose, reversing early-week declines. JPMorgan added 3.4% to its value, while American Express gained 3.5%.
All three stock averages are now positive for the week, bouncing back from steep losses on Monday. Investors have largely eased their concerns that a potential collapse of Evergrande would lead to a significant meltdown across global markets.
Nevertheless, risks persist as the Chinese real-estate developer is yet to make payments on $83.5mn in debt by a Thursday deadline. Moreover, Chinese authorities have been warning local governments to brace for the insolvency of Evergrande as Beijing has been unwilling to bail it out, the Wall Street Journal reported.
In Other Markets
Elsewhere, bitcoin spiked to levels near $45,000 per coin late on Thursday. The rally was fueled by a Twitter announcement, saying users could now get paid in bitcoin for using the social media platform. The Tips feature, a Twitter spokesperson said in a press call, included the option to tip for content with bitcoin.
In the meantime, the price of gold declined yesterday as investors sought riskier alternatives. The yellow metal slipped 1.5% on the day, extending its drop from a day earlier. While gold rose slightly early on Friday, this asset is still an underperformer on the week, compared to stocks, making it a potential play for those of you looking to buy the dip.
The integration of bitcoin to Twitter’s tip service marked a huge step toward bitcoin becoming a widely-used means of payment. Furthermore, given that Twitter CEO Jack Dorsey has been one of the most vocal supporters of Bitcoin, this update was well-received by the crypto community.
Looking ahead into the day, US stock futures hovered moderately in negative territory. Dow futures were lower by about 50 to 100 points in pre-market deals today. European shares aim to finish the week in the green, after several days of gains. Early on Friday, bourses across Europe were mildly lower.
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