US Stock Markets Extends the Last Week Upside Momentum
US stock futures are in green on Monday trading as investors are appreciating strong retail sales data along with prospects of economic recovery. The postponement of trade restrictions on China added to investor’s sentiments. Dow Futures are up 0.18% while S&P 500 futures soared 0.25%. The US stock market reported gains in the past four out of five weeks.
“We were in the middle of a major trade deal. And I made a great deal, $250B potentially worth of purchases. And by the way, they’re buying a lot, you probably have seen,” the president Donald Trump said.
“And when you’re in the middle of a negotiation and then all of a sudden you start throwing additional sanctions on – we’ve done a lot. I put tariffs on China, which are far worse than any sanction you can think of,” he added.
On the negative side, rising coronavirus infections are hurting sentiments. On Friday, single day infection in the US reached a high level since May 1 and the World Health Organization says infections worldwide reached the record level.
Despite increasing virus infections, the threat of lockdown is very low. Indeed, the countries are reopening their economies and easing business and travel restrictions. However, they are urging people to work on social distancing practices. For instance, the UK government seeks to create 2-meter social distancing rules and plans to make facial masks compulsory for everyone.
The broader market index S&P 500 soared close to 41% since hitting low on March 23 and it is up nearly 20% in the second quarter. Down Jones Industrial Average and Nasdaq also reported massive gains since bottoming in March. Sentiments for oil prices are also strong due to the steady growth in demand on economic reopening.