The US equity markets made their biggest ever signal day gains. The optimism was caused mind reports the $2 trillion Covid-19 stimulus package was close to being agreed.
The Dow Jones Industrial Average a 2,112 point gain, the biggest ever, or 11 percent, while the S&P 500 gained over 9.3 percent and the Nasdaq over 8.1 percent.
President Trump’s comments that he favours opening up the economy sooner rather than later also boosted investor confidence.
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Friday’s selling spree wiped out any gains made in July for both the Dow and the Nasdaq.
Investors are taken by fear and worry over the European financial position according to Frank Fantozzi, president and senior adviser at Planned Financial Services.
See U.S. stocks fall as Europe fear overrides earnings – MarketWatch.
Dow loses 250 points…
…Spain would need to borrow up to $78bn …
…Moody’s expected to start downgrading global banks… Barclays, Deutsche Bank, Citigroup and Goldman Sachs…
Moody’s warned in February that the ratings of 17 banks and securities firms under review because they face increased funding costs and regulatory scrutiny.
…German economy, the safest in Europe, weakening.
German support has so far saved the eurozone from meltdown, Germany’s private sector shrank for the second month running in June, manufacturing, a three-year low.
via Markets fall amid gloomy US forecast and global slowdown
Markets fall amid gloomy US forecast and global slowdown | Business | guardian.co.uk.