Even in the wake of the pandemic, we can already figure out which companies remain unscathed or even become stronger. The technology sector continues to ascend, so, no surprise by the end of Monday the stocks closed prominently higher. Wall Street was stable last week despite the non-stop increase in the precedents of the new virus detection. Convenient ways of Forex trading have been put to the test during these turbulent months of the worldwide epidemic. However, for ecn brokers the viral risks turn out to be less noticeable due to the nature of their working process that excludes too much face-to-face communication.
Gaining one point eight percent, or more than four hundred points, DJIA looks towardly. INDEXSP and Nasdaq don’t fall behind making a high jump of one and a half – two percent by the end of the day. Rising more than 2 percent, the Composite broke its own previous records.
Solid grounds for a significant breakthrough
Incontestable market majors, Apple, Amazon and Microsoft stood at the forefront rising by at least two percent. Amazon shares updated their highest value; Netflix shares exceeded three thousand dollars as a success debut. Superiority of such services in these uncertain times is understandable. The quarantined people spend much more time watching entertaining content. Thus, the Nasdaq-100, embracing a hundred of the largest non-financial stocks rose by 2.5% on Monday. In 2020, its growth amounts to more than twenty percent.
Scoring a big deal also lifts the spirit quickly. Warren Buffett (Berkshire Hathaway) did not hesitate to sign the first significant contract of this rocky year. The deal concerning gas transmission by Dominion Energy worth approximately ten billion. Immediately, his company’s shares rose about two percent. At the same time DE came to eleven. According toanalytics, it’s not the even the final edge. Thus, it’s understandable that companies accelerating the transition to the digital trade relations are the winners. Another bigtime is that of «Postmates», food app delivery service. Just as Uber announced this acquisition, their stocks rose up 6 percent.
The China’s stocks began to soar right after their opening after the virus’s bitter blow. The Shanghai Composite, gained more than 5 percent, while the FXI index grew by more than nine. Since 2009, this is clearly their best result.
Also, the statistics shows an unexpected expansion in the U.S. services sector. In June the firm’s nonmanufacturing index rose to 57.1, even exceeding the estimates. The rise may continue, as the momentum is positive. Market majors (Dow, Nasdaq, S&P 500) grew three-four percent last week. In addition, the market managed to show the perfect quarterly outcome in recent decades.
Recovery may result in a sharp rise
Jeff South, the investment strategist, is sure that the global economy is coping much better and the gloomy forecasts doesn’t come to life. He suggested that the markets might remain flat for some time, but the growth is inevitable anyway. This assumption seems highly probable given that the Monday gain came amid the growing coronavirus cases worldwide.
Mark Chaikin reported a rapid flash of people diseased with Covid in countries that didn’t set up enough social restrictions. It comes from the attempt to save their failing economies by any means. So far, the official mortality has not increased, but this indicator is usually late and the next two weeks are about to reveal the sad consequences. Chaikin believes this spike has initiated the reopening momentum.
The pandemic’s economic consequences of the coronavirus are likely to affect many companies for months and even years. However, it has also provided new investment opportunities for the digital firms. Still, WHO announced a sad record on Saturday the – more than two hundred thousand cases of coronavirus in a day. And the lion’s share – nearly one hundred thirty thousand patients – belongs to the Americas.