DOW rose, growth or correction before the collapse?
2022.11.29 07:37
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DOW rose, growth or correction before the collapse?
Budrigannews.com – Stocks in the United States are expected to open slightly higher on Tuesday, rebounding from the sharp losses of the previous session. This is helped by optimism that China may soon ease COVID-19 restrictions ahead of additional quarterly earnings.
The contract was up 40 points, or 0.1 percent, traded 13 points, or 0.3 percent, higher, and climbed 65 points, or 0.6 percent, at 07:00 ET (12:00 GMT).
Fears of a global slowdown in growth were stoked as civil unrest in China over the government’s stringent COVID lockdown policies caused the three main stock indices to close lower on Monday.
The broad-based and tech-heavy ended 1.6% lower, while the blue chip lost almost 500 points, or 1.5%.
Since China’s National Health Commission announced earlier on Tuesday that it will present measures to accelerate vaccination of the elderly, a vulnerable age group, sentiment has changed.
Despite a nationwide increase in cases, this has been interpreted as a sign that the Communist Party will attempt to relax COVID-19 restrictions.
Having said that, these gains are speculative as a result of Federal Reserve officials’ more hawkish remarks, which suggested that interest rates might need to be raised for a longer period of time.
In an interview with Bloomberg TV, President Thomas Barkin of the Richmond Federal Reserve Bank stated, “I’m very supportive of the path that is slower, probably longer, and potentially higher.”It’s clear that you don’t want to cause harm that you don’t have to.However, the primary focus is on controlling inflation.”
In addition to Fed President Jerome Powell’s Wednesday speech, additional economic data, such as the September reading of the S&P Case-Shiller home price index and the most recent number, will be examined later on Tuesday.
When it comes to quarterly earnings, the software industry is expected to be the focus on Tuesday, with numbers from companies like Intuit (NASDAQ:),NASDAQ: Workdaylikewise Crowdstrike Holdings, NASDAQ:
The optimism regarding China’s COVID restrictions and hopes that the recent weakness will prompt OPEC+ to reduce production when it meets next week contributed to Tuesday’s rise in crude oil prices.
Due to rising COVID-19 cases in China, the world’s largest crude importer, as well as rapidly approaching recessions in Europe and the United States, the other major sources of energy demand, the crude market has struggled recently.
Crude prices have fallen below the levels that prompted the Organization of the Petroleum Exporting Countries (OPEC+) and its allies to reduce supply in October.
Later in the session, the is scheduled to publish its weekly U.S. crude inventories figures.
By 7:00 p.m. Eastern Time, the US price of a barrel was up 2.7% to $79.33, and the contract was up 2.9% to $86.31.
Additionally, it traded 0.4% higher at 1.0381, while rising 0.9 percent to $1,755.90/oz.
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