Nasdaq and S&P 500 got a raise as Apple and Amazon experienced a bounce in its shares. Yet, Dow constituents continued to be muted in their transactions due to uncertainty over the US Fiscal stimulus. Amazon jumped close to 2.2%, especially after Bernstein decided to upgrade the stock which would definitely outperform the rest. It also stated that the company would continue to accrue a boost, not just from premium subscribers- but third-party merchants too. And this boost would continue despite the pandemic.
Apple and Amazon Raise Points on the Nasdaq Scale
Apple, Microsoft, and Google rose in a range between 0.3% and 0.9%- which is impressive considering they had brought out a rally for Wall Street ever since the coronavirus crash. According to reports, there have been 11 major indexes of S&P 500 that have been trading higher. Amongst them, consumer discretionary and real estate have accrued massively. CFRA’s chief investment strategist- Sam Stovall mentioned that the day for reassessment was here. Investors would be assessing if the ongoing pullback would deteriorate situations further or not.
This comes after the Nasdaq stocks in America had begun the week on the defense- for fears had been coming up about international lockdowns once more. Europe could easily initiate a new series of lockdowns, and Congress was already in a stalemate. With the delay in a bill that was simply driven by coronavirus-mitigation, one could expect that hopes of economic recovery would be pretty slow. S&P’s benchmark ended a few points below 9% after a record high in the first week of September.
Difficulties Down The Line for Investors of Fortune 500 Companies like Amazon, and Apple
Most of the investors in Amazon, and Apple have completely braced themselves to experience a period of market volatility. This comes after the political uncertainty in the capital has started to grow after the demise of Ruth Bader Ginsberg- the Supreme Court Justice. Stovall further mentioned that the presidential elections would lead to a lot of uncertainties as there would be a lot of trades in the short-term, as well as major volatility between the Nasdaq and other stocks.
Jerome Powell, the Federal Reserve Chair would be making his first appearance at the Capitol Hill on Tuesday. This meeting would be specifically set to address the questions of lawmakers, and talk about the emergency measures that the central bank has brought up for economic support. This goes without saying- the support of the banks would be invaluable during this pandemic.
The day saw Dow Jones Industrial Average falling down 11.07 points, or close to 0.04% on the S&P 500. Nasdaq on the other hand, was up by 28.53 points. Tesla, on the other hand, fell 4.4% as Elon Musk issued a warning that the acceleration of production might bring out big problems. An expert did caution the CEO that their over-utilization of aluminium parts might simply be bringing up challenges in manufacturing.
But as of now, good news for the companies in Silicon Valley as both Apple, and Amazon have been securing their positions on the Nasdaq scale after suffering a scare back in March.