Wall Street is finally gaining a good boost at the end of January, with stocks shooting up in five months on Friday. With Dow Jones gaining a fair head start for the year, we are hoping this is what the market projects throughout the year. So far, Wall Street have not had the best luck with stock prices as they are down by around 5 percent still.
With stocks closing for Dow Jones at a 400 point incline to 16,466,30 – this being the second straight day of triple digits. Microsoft shares jumped by 5.83 percent on a better-than expected result.
However, it is not all good news for Wall Street as it is still low by around 5.5 percent. The oil prices for the United States have had a tense start this year. The S&P’s loss was so volatile at one stage, it came down to 11 percent before recovering to 5. Meaning crude oil prices jumped to $33.74 a barrel– a 19 percent rise from January the 20th.
“It would not be surprising if the S&P 500 does, once again, test the new correction lows reached earlier this month,”
– Jim Paulsen, chief investment strategist at Well Capital Management
Major companies under NASDAQ from Facebook and Apple being have ranged up by 3 percent, Alphabet Inc. Stocks who own Google stocks are up by 11 percent. The mining giant, BHP Billiton has fallen by 1.3 percent in the period of two hours on the 1st of February.
Traders think the Dow’s sudden incline was driven by the Bank of Japan’s decision to join the European Central Bank in negative interest-rate territory. This pushed the value of the down from the dollar and sparked a rally in the world stock market. Pretty much everywhere else benefited from this decision besides Japan itself.
Due next week, the first piece of economic data from the current quarter will be released. This will give a correct calculation as to how stocks will be go in the later months.