rtmark
LearnBonds.com

Market caught between rising virus cases and election campaigning, says trader

Market caught between rising virus cases and election campaigning

The stock market retained a strong performance despite a rapidly increasing number of more infected by the coronavirus in the US as well as growing concerns over up coming Presidential elections. S&P 500 and Nasdaq posted modest gains while the Dow fell at the close of Friday’s session. The S&P 500 health-care sector ETF rose to a record high.

The S&P 500 and Dow each posted weekly advances for a third straight week. The S&P 500’s weekly advanced totalled about 1.3%, while the Dow rose 2.3%. The Nasdaq declined by about 1% over last week.

According to one of Wall Street’s top strategists – Ally Invest’s Lindsey Bell-  the underlying market signals could mean anything for investors. As 10-year Treasury Notes have trouble getting above 1%, gold recently broke the barrier of $1,800 an ounce amid elevated volatility levels.

While investors are drawn to low-risk products like government bonds and gold, it is too soon to talk about an economic rebound as of yet.

“June economic data has improved,” she said. “The question though is where does that economic data go from here? Are we plateauing or could we potentially see a slowdown and not grow?”

She suggests the market is at a critical crossroad — particularly as the presidential election begins to dominate the headlines.

Right now, we are in the middle of second-quarter earnings season where a range of companies are posting promising performance results, while others are falling short of analysts’ projections.

For months the most highly-valued, technology and e-commerce companies have marshalled a nearly unceasing rally during a public-health crisis that has exacted tremendous pain on the domestic and global economy.

The conclusion of last week’s trade on Friday highlighted an easing of investor appetite for mega-cap tech names, raising questions about the effect of slowing and the possibility of a reversal of reopening plans on economically sensitive sectors, like manufacturers, energy companies, financials and industrials.

There are some positive indicators in the market including the Federal Reserve’s unrelenting policy support for stocks and a high probability the government will pass a new stimulus package to help struggling Americans.

This isn’t the first time the markets have seen glimmers of rotation out of tech and growth names. The stock market rally up to this point has been supported by companies that have been considered more resilient in this uncertain economic climate.  But with no end in sight of the public health crisis in combination with the upcoming election drama, investors best prepare for any situation that could occur in November.

As that level of uncertainty is going to continue to feed the volatility, now may be a good time to consider trading commodities or trading gold as the value of safe havens rises.

Trusted & Regulated Stock & CFD Brokers

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Galina Mikova

Galina is a Hubspot-certified Technical Writer with over 10 years of experience in working with Fortune 500, private investment, banking, FOREX and niche tech companies as well as crypto and blockchain startups. She has a solid background in FinTech and blockchain technology.