After two long months of struggling through extremely erratic fall and rise in the energy and financial sector, a recent recovery may finally put everything back on track. Wall Street could be seen in a positive light last Thursday as it moved higher.
The S&P 500’s increase that left the index down to 2.5 percent in 2016 has been the steadiest gain since the time it faced its worse at the beginning of this year.
This four-week consistent rise has finally made all the nightmares of another 2009 episode occurring again, vanish for the time being. As stocks grew stronger for the second day straight, a sense of pattern of an improving market could be jotted out by investors. The S&P has had the opportunity to recover seven times, out of which; it gained in five.
“That is positive and I think there’s a reason to look at that with some hope,” said Andrew Bodner, president of the Double Diamond Investment Group in Parsippany, New Jersey. At the end, he believes that anything can take place in the near future, especially given the market’s recent volatility. Therefore, he chooses to remain alert.
It is also quite interesting to note how the labor market appears to stand strong, even though a noteworthy rise has been noticed in the unemployment rates. The trend of a strengthening labor market continues to grow amidst the increasing number of Americans filing for unemployment benefits.
“Through some of the ups and downs in the weekly series, it looks like the trend in initial claims has improved over the past month, signaling that the labor market continues to improve despite weakness in several other recent economic reports,” said Daniel Silver, an economist at JPMorgan in New York.
Investors were also waiting for Friday to check a comprehensive labor report, which is expected to be bringing to light an addition of 190,000 jobs in the coming months, which is really up from a gain of 151,000 as compared to the previous month. Any number below the 300,000 threshold is considered to be a healthy labor market condition, according to the Labor Department’s claims.
Energy sector’s Brent crude prices were also noticed going steady, with an increase of 35 percent as compared to the last month. Other organizations like Dow Jones industrial average ended with 0.26 percent higher at 16,943.56 points. The Nasdaq Composite added 0.09 percent to 4,707.42. With the energy sector rising up with a total of 1.28 percent and financial with up to 0.62 percent; a sense of positive terrain can be seen being paved out for 2016.
The financial sector has also surged a total of 13 percent in the past 14 sessions. However, low oil prices may force energy companies to default on their debts. There are many others like Herbalife and Kroger that had to face a drop of 7.02 percent and 7.01 percent respectively.
The S&P 500 index depicted one new low and 16 new 52-week highs, whereas the Nasdaq was noticed to be recording 20 new lows and 39 new highs. Volume hit 8.8 billion shares, matching the daily average in the past 20 sessions.