Despite worries of the economic downturn, Wall Street investors still bet on the stock market, helping Wall Street reverse its rebound in Wednesday session (August 28).
Following the decline of Tuesday session, US stocks continued to open in the red on Wednesday as worries about economic recession and mixed statements of US-China senior leaders on trade negotiations. trade. However, very soon after that, Wall Street reversed its recovery thanks to financial and energy stocks.
Financial stocks rebounded to regain all of what was lost in the previous session, and information of US oil inventories decreased, helping crude oil prices rose 1.5% to support the rise of energy stocks. Another point, on Wednesday, the yield of 30-year US government bonds fell to a record low, lower than the average dividend yield of the S&P 500, causing investors to abandon bonds and pour money. back to stocks, despite fears of recession and the US holding the decision to increase taxes by 5% to $ 300 billion of Chinese goods from September 1 and December 15.
Next week, investors will look at monthly employment reports and manufacturing data that could guide expectations about another possible rate cut from the Federal Reserve System – Fed at its mid-September meeting.
At the end of August 28, the Dow Jones increased by 258.20 points (+ 1.00%) to 26,036.10 points. The S&P 500 index increased by 18.78 points (+ 0.65%), to 2,887.94 points. The Nasdaq Composite Index increased by 29.94 points (+ 0.38%), to 7,856.88 points
Meanwhile, on the European stock market, the opposite movement continued to take place in the fourth session, but the position reversed. While German and French stocks dropped because investors were worried about the global recession, British stocks increased again when Brexit was chaotic, causing the pound to drop, thereby supporting the stock market.