A recent market report showed that US stock indexes closed higher this Friday especially those involving technology and industrial companies. A chief strategist explained that the rise was due to the growing demand for US government bonds and safe-play stocks after the coronavirus outbreak adversely affected tourism and economic growth in China.
Last Thursday, The Post and Courier reported that major US stock indexes have closed with higher values. It revealed that technology and industrial companies have offset the declines of their shares in other markets due to the lowering demand for the same services in China.
The report showed that the S&P 500 increased its gains for the second time in a row. The same improvement was seen from the Nasdaq composite. The Dow Jones Industrial Average also increased in value for three consecutive days despite its drop in shares of Travelers Cos. Bond. This increased in price and generated a lower yield.
The report revealed that the S&P 500 index reached 3.79 points or increased by 0.1 percent to 3,325.54. It was also revealed that its previous yield was down by 0.6 percent.
According to chief strategies with TD Ameritrade J.J. Kinahan, the US stock earnings were results from the China coronavirus epidemic. The said spread of the virus across China and other countries in Asia had allegedly adversely affected tourism and economic growth worldwide. Hence, global markets have shown increasing demands for US government bonds and safe-play stocks.
He also added that Asian markets had a tough couple of days due to the epidemic causing increased pressure on the market coming in.
It was also discussed in the report that the increase in stocks in the technology and industrial markets was due to General Motors' opening of a new technical center for performance and auto racing in Concord. The project was revealed to increase employment in the US and would open a healthy talent base of the industry in the US.
Bond prices also rose this Friday where the 120-year Treasury receded by 1.73 percent from 1.77 percent last Wednesday. It was also shown that the Russell 2000 index of smaller-company stocks also increased by 0.55 points to 1,685.01.
In other news, it was reported that as China closed down for the celebration of the Lunar New Year, shares in other Asian markets were mostly higher. Japan's Nikkei 225 index increased by less than 0.1 percent to 23,811.54. The Hong Kong and Hang Seng also increased by 0.2 percent to 27,949 along with the Sensex in India which gained by 0.2 percent to 41,473.97.
