Stock Market Update Friday, May 22nd, 2020
Stocks were quiet ahead of the 3-day holiday weekend.
And surprisingly, it feels a little like business as usual for the markets…stocks are rallying towards highs and the U.S. and China can’t get along! 😉
So what are traders focused on?
U.S.-China tensions and the reopening of the U.S. economy.
Overnight, China failed to release a GDP target for the first time in 30 years because of the economic uncertainty tied to COVID-19. But the real focus was on Hong Kong.
China officials released a draft for new national security measures on Hong Kong in a power grab attempt for the region. The move could threaten the city’s status and ignite protests.
President Trump said that the U.S. would react “strongly” to the measures. And today, U.S. Senators introduced a bi-partisan bill that would sanction Chinese officials and organizations who enforce China’s new security measures against Hong Kong.
On the other hand, China said that they remain committed to implementing Phase One of the trade deal.
Stocks were mixed at the open the dropped.
After spending most of the morning in negative territory, stocks rallied in the afternoon. And by the end of the day stocks were slightly higher with the DOW flat.
Here’s where the major indices ended the day:
- The S&P finished with a 0.3% gain. Up 7 points, the S&P ended at 2,955.
- The DOW ended flat. Dropping just 9 points the DOW closed at 24,465.
- The NASDAQ was up 0.4%. With a 40 point gain the NASDAQ finished at 9,325.
Crude Oil (CL) snapped a 6-day winning streak. Down 2.0% Crude Oil ended at $33.25.
Today Dr. Fauci, director of the National Institute of Allergy and Infectious Diseases seemed bullish on the reopening of the economy.
Fauci said he is “enthusiastic” about the economy reopening and said “we can’t stay locked down for such a considerable period of time that you might do irreparable damage and have unintended consequences, including consequences for health. He also said that the data on Moderna’s (MRNA) vaccine looked “promising.” Moderna ended the day with a 2.9% gain.
NVIDIA (NVDA) was on the move today after reporting better than expected earnings. The stock finished higher by 2.9%.
U.S. markets are closed on Monday for Memorial Day weekend. Enjoy the 3-day weekend!
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.