After the left-hand trading session in the early of the week, US stocks continuously scored, with two S&P 500 and Dow Jones indexes recorded the largest weekly gain percentages since 11/2018, in It is worth noting that the Dow Jones index increased by nearly 5% in the last trading week.
The world stock market was mixed in the early trading session of the week (June 3), in the context of many concerns about trade tension between the US and China.
This is also the only session this week that the S&P 500 and Nasdaq indexes lost points. OANDA market analyst Edward Moya said the market is concerned that the global economy may fall into recession by mid-year, if the US imposes tariffs on Chinese and Mexican goods.
In addition, the psychology of investors is affected by the newly released data showing the slowdown of manufacturing sector globally.
In the trading session on June 4, Wall Street securities led the rise of other markets around the world.
The key factor driving investor sentiment in this session is that Federal Reserve Chairman Jerome Powell acknowledged that trade conflicts overshadowed the growth prospects of the world’s largest economy.
According to Powell, the Fed is closely monitoring the impacts of these developments on the US economic prospects and will take appropriate action to maintain the growth of the US economy.
The above judgment is evaluated by experts as an opportunity for the possibility that Fed will cut interest rates.
It also marked a change from Mr. Powell’s recent statements. The Fed has kept interest rates unchanged since early 2019 until now, after a series of interest rate rises in 2018 and previous years.
In the session of June 5, US stocks rose for the second consecutive session, amid the positive data on the field of overpowering information, the lack of optimism in the private sector. ADP estimates that US businesses have created 27,000 new jobs in May, the weakest level in more than 9 years.
However, this data was overwhelmed by the statistics of the Institute of Supply Management showing that in May the operation of the service sector increased again after two months of decline. Besides, the psychology of deals in the market also received support from the above comment of Mr. Jerome Powell.
Positive developments in trade tensions between the US and Mexico regarding immigration issues helped US stocks extend the rally to the third consecutive session on June 6.
With concerns about trade tension since US President Donald Trump "threatened" to impose a tax on imports from Mexico a week ago, investors welcomed Bloomberg’s report that the US could back the tax-imposed plan, to have more time to negotiate the issue of migrants.
Besides, optimistic comments from Mexican Foreign Minister, Marcelo Ebrard, about the progress in the negotiation process with the US are also factors to support the psychology of investors.
By the end of the week, Wall Street got a boost after the report of poor US employment reinforced the rumors that Fed will soon lower interest rates.
Specifically, the US only increased by 75,000 new jobs in May, less than half of the 180,000 experts predicted earlier, while the unemployment rate remained stable at 3.6%, according to data. of the US Department of Labor.
Closing this session, the Dow Jones industrial index rose 1% to 25,983.94 points, thereby closing the last trading week with an impressive increase of nearly 5%. And the S&P 500 added 1.1% to 2,873.34 points, and the Nasdaq Composite technology index rose 1.7% to 7,742.10 points.
This is also a special session that kicked off with big tech companies, when shares of four "big" Amazon, Facebook, Apple and Google’s parent company Alphabet all increased at least 2%.
