On Thursday, a gauge of MSCI’s global indices that keeps track of 49 stock exchanges across the world had stretched out their recent leg of gaining streak on to a ninth straight session in a row and Wall Street had wrapped up the session with modest gains as stimulus hopes have still been playing a pivotal role in investors’ sentiment.
Nonetheless, crude oil prices alongside energy-associated stocks slipped after both 14-member OPEC (Organization of Petroleum Exporting Countries) alongside Paris-based IEA (International Energy Agency) had downsized the likelihoods of an earlier-than-anticipated recovery in crude oil demands in face of a raft of renewed lockdown measures adopted by a majority of G20 economies.
However, while energy stocks slipped, tech sector rose 1.1 per cent in the Wall Street and had proffered the biggest boost to benchmark S&P 500 accountable for roughly 45 per cent of entire trading activities in the Wall Street.
Global stocks extend gains as stimulus hopes, dovish Fed downplay pandemic risks
Apart from that, although market participants across the globe were heavily priced in on a trillion-dollar stimulus package from the US Government as early as by mid-March despite possibilities of a record rise in budget deficits alongside debt-to-GDP ratio, stimulus fervours were unfeathered slightly after US President Joe Biden had said to a group of US Senators that Beijing had been “eating our lunch,” pouring cold water over optimisms of a near term resolution of a long-running trade dispute between the world’s first- and second-largest economy.
Citing statistics, as Nasdaq and S&P 500 had spiked to record closing highs on Thursday, trade-sensitive Dow inched lower to 31,430.70, S&P 500 added 0.17 per cent to 3,916.38 and tech-heavy Nasdaq gained 0.38 per cent to 14,025.77.
In tandem, the regional pan-European STOXX 600 rose 0.46 per cent, while MSCI’s gauge of global equity indices climbed 0.25 per cent. Meanwhile, referring to a dovish remark from Fed Chair Jerome Powell made on Wednesday, a portfolio manager at Villere & Co in New Orleans, Louisiana, Sandy Villere said, “As long as the economic news is difficult the Fed is going to continue to act, which will prop up the stock market. ”