The worldwide economy had come to a standstill in the shadow of war, but the US stock market gave relief to investors by showing a strong comeback on Wednesday. The S&P 500 index rose 1% after two days of crippling declines, nearly erasing losses since the war. The Dow Jones Average rose 319 points, while the Nasdaq Composite gained 1.5%. Initially, South Korea’s Kospi index fell by 12.1%, which was the biggest fall in its history. Let us tell you that the main reason for the uncertainty in the market was the ongoing war between America and Israel with Iran and then the rising oil prices. However, oil prices also stabilized on Wednesday. The price of Brent crude decreased from $84 to $81.40 per barrel and the price of US crude stood at $74.66.
The market got the support of good signals from the American economy
If seen, good signals from the American economy also supported the market. The report said trade in real estate, finance and other services grew at the fastest pace compared to last year. Besides, the prices were also increasing gradually, which is a positive sign for inflation. Not only this, there was improvement in the job sector as well. Non-government employment picked up, which bodes well for the broader employment report due on Friday. However, some investors are cautious in the meantime. Francis Lunn, CEO of VentureSmart Asia, said the Iran issue was getting out of control and Trump had miscalculated.
These companies were prominent in the growth
It is noteworthy that crypto companies, retail and travel companies, and big tech companies were the main drivers of market growth. Coinbase rose 15.3% and Robinhood rose 8.3%. Ross Stores gained 7% and Expedia gained 3.1%. Nvidia rose 2% and Amazon rose 4%. On the other hand, in Asia, shares of Hong Kong and Japan were in decline, while in Europe, France’s CAC 40 rose 0.8% and Germany’s DAX rose 1.7%. Along with this, the 10-year treasury yield in the bond market rose to 4.08%. In such a situation, this is good news for the Federal Reserve, because its job is to keep the American economy strong and control inflation. War and rising oil prices remain challenges for the Fed.
