US stocks post solid gains as technology shares lead rally

Business

US stocks post solid gains as technology shares lead rally

Sunday, September 27, 2020

Print this page Email A Friend!


STOCKS shook off another bout of volatile trading and finished solidly higher on Friday last, led by gains in technology and health care companies. Despite the rally, the S&P 500 still posted its fourth-straight weekly loss, extending Wall Street's September swoon.

The S&P 500 rose 1.6 per cent after flip-flopping between small gains and losses a few times in the early going. Stocks have been erratic this month, with indexes setting new highs to start the month and then falling sharply as investors worried that values for some of technology giants had risen too high.

The benchmark index ended the week with a 0.6 per cent loss for its first four-week losing streak in more than a year. The index is now down 5.8 per cent for September, following five straight months of gains.

The S&P 500 came within striking distance of a 10 per cent drop from its all-time high earlier this eek, what Wall Street calls a correction.

Big tech stocks recovered from an early slide – Apple gained 3.8 per cent, Microsoft rose 2.3 per cent and Google's parent company added 1.1 per cent.

Traders also bid up shares in cruise lines. Norwegian Cruise Line notched the biggest gain in the S&P 500, vaulting 13.7 per cent. Carnival jumped 9.7 per cent and Royal Caribbean Group climbed 7.7 per cent.

Recently, investors' frustration has also grown with the inability of Congress to deliver more aid to the economy after weekly unemployment benefits and other stimulus expired.

Democrats in the House of Representatives are paring back their proposal for stimulus in hopes of jumpstarting talks with the White House, but investors are sceptical whether or not something can happen soon. Deep partisan divisions have kept Congress from acting, and tensions are on the rise due to the sudden vacancy on the Supreme Court following the death of Justice Ruth Bader Ginsburg.

Yet another report on Friday suggested that the economy's recovery is slowing without the support from Capitol Hill. Growth for US orders of machinery and other long-lasting goods was just 0.4 per cent last month, down from 11.7 per cent in July. The figure on durable goods was much weaker than economists had forecast, though several said they saw a mixed picture underneath the headline numbers.

Among other concerns for markets are rising tensions between the United States and China and the possibility that investors' expectations for a COVID-19 vaccine arriving early next year may prove to be too optimistic.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaper-login


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT