A new day comes with a bag full of new hopes for the US Stock markets as Wall Street witnessed substantial growth on Monday. The sole reason behind the growth had to be a decline in the new number of Coronavirus cases in the US on Sunday. Market analysts and traders expect the rally to continue further on Tuesday so that the losses suffered by the indices since the end of February can substantially regain.
The good news is that all the major markets around the world continued to stay positive and record gains on Tuesday. Such a turnaround is solely because the Wall Street has performed well enough in the opening day of the week.
Note- Investors and traders need to know that when the market opens a week with gains, it is a positive indicator and a series of bullish engulfment can be expected throughout the week to follow.
However, this is when everything is normal unlike now! The word is suffering from the impact of Coronavirus which is why such forecasts and futures can be outplayed completely without any second thought. Though there is a lot to recover for the global economy and to get back on the track, the recent 2-day rally is majorly due to the decreasing number of new cases in some of the Coronavirus hotspots around the world.
The boost in the market performance has also brought back the investor confidence. The US Treasury bond prices fell on Monday which shows that people are moving out of the safe-haven and making “risky investments”. The oil prices also took a slight jump sighting the fact that Russia and Saudi Arabia could finally call off their oil price war.
Asian markets at a glance!
The Nikkei 225 index of Japan gained 2% by the end of the day while Hong Kong’s Hang Seng Index leaped up by 2.1%. South Korea’s KOSPI also finished the day with a 1.8% gain!
On Tuesday, the US stock market futures hint at a positive start for the market as of yet. The DOW Jones index is targeting at least 0.4% or 100 point gain right at the opening hour. Though the futures of the S&P 500 and Nasdaq lost their gains early in the morning but as the day keep moving, they keep registering gains!
However, the final word for the indices shall only be possible after the closing bell hits the floor. Every trader is price speculating and hoping that their technical analysis stands true rather than the fundamental analysis!