Last week was a good week in the stock market, with the Dow finishing off the week 90 points higher than the start. The S&P and NASDAQ, as well as the FTSE and the German Dax also finished positive- The Hang Seng Index fell 800 points this past week, amid protest tensions, and a new security law that will increase the government's control over Hong Kong- the Hang Seng Index finished off the worst loss in almost five years. Looking back at US stock markets, the futures look upwards, despite increased tensions with China (again.) Let's jump right in.
After China passed a bill that could limit Hong Kong's right to self-govern, the US got involved, a White House aide saying they will sanction China. Hong Kong protesters continue to rally, even despite the continued Coronavirus situation; As said above, the Chinese markets are feeling it, after having the worst session in years. Surprisingly, this hasn't had much effect on major global markets. The futures for Asian stocks point upwards slightly, allowing global investors to breathe for a bit. The Dow, S&P, and NASDAQ all point upwards roughly 1.15, 1.24, and 1.3 percent respectively, even amid these tensions (Source: CNBC Futures). After one of the most iconic Bear-Markets in US history, it looks like the worst is over. For the past month, US stock indexes have been up and down, but have been on the rise for the most-part since around May 13. Business is returning to normal in the US, and all the Coronavirus news is driving the market forward; even on days where the market is closed, positive Coronavirus news that day, can and will drive the market forward.
This coming week in the stock market:
The rally will continue, as the Bear-Market slowly churns into a Bull-Market once again; it's important to note it will not happen instantly- just like any other recession in history. Although Coronavirus cases are still rising in the US, optimism for the market is not exactly unrealistic, especially with vaccine testing and the country reopening.
Summary: A Chinese bill limiting the allowance of self-governance in China has protesters enraged, the US getting involved, and Asian stock markets falling. Surprisingly, all this had little effect on the booming US Economy; US Stock futures point upwards, as well as Asian stocks, allowing some relief- amid more and more positive Coronavirus news, the US futures also point upwards.
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