While we know that the stock market had fallen the past few days thanks to the trade war between the United States and China, it seems that things have recovered a bit. In fact, we’re seeing a strong rebound in U.S. stocks, in general, Tuesday since China was able to stabilize its local currency.
According to Investing.com, United States stocks jumped up 40% of the numbers it fell on Monday, also known as the worst “one-day losses” of 2019.
More specifically, the S&P 500 went down 3% on Monday and went up 1.33% Tuesday in terms of day trading price. From there, the Dow Jones Industrial Average dropped 767 points on Monday and went back up over 1.22%. Finally, the Nasdaq Composite grew 1.39% on Tuesday after a drop of 3.5% on Monday.
Things changed at first because the Chinese yuan was going to trade at 7 to the US dollar, reports the publication. This is partly because United States President Donald Trump said he would place 10% tariffs on imports from the country of China come September 1st.
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Despite this, out of the 30 stocks on the Dow market, 24 of them went up. This is in pairing with 87 of the 100 stocks going into the Nasdaq 100, with an overall growth of 1.4%. According to the publication, all of these stocks were negative on Monday.
Technology stocks were the big winners, with Apple, Microsoft, Facebook, and Alphabet on the up. From here, stocks including but not limited to Nike and Ulta went up as well, alongside other traditional consumer-area stocks.
Energy and materials stocks didn’t recover as much, however. Investing says that oil prices dropped, with West Texas Intermediate’s materials falling 1.94% to $53.63 a barrel. This lead to an 8.45% stock drop in August. Chemical stocks hit a 52-week low as well, with U.S. Steel and Alcoa dropping too.
All of these drops were somewhat predicted, but we don’t know how long they’ll recover for, or if these highs will stay.
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