U.S. stocks closed out a second consecutive quarter with upsides recorded yesterday but stock traders remain wary because the pending U.S. presidential election and exploding COVID-19 caseloads
What we know; The Nasdaq composite index rose 11% in Q3 2020 and registered its biggest two-quarter increase since 2000.
- The U.S stocks post gains in Q3, amid growing geopolitical uncertainty, were up 7.6% in Q3 2020.
- The S&P 500 rose 8.5% for the third quarter, although it fell 3.9% in September in its first monthly decline since March when the COVID-19 pandemic started its spread across the world’s most powerful economy.
Still, the benchmark index’s quarterly gain extended its nearly 20% rise in the second quarter, for its biggest two-quarter jump since 2009.
Hopes for economic recovery and historic stimulus from Washington and the Federal Reserve fueled the U.S. stock market’s rally following the COVID-19 -driven crash in March.
That said, investors remain shaky as growing uncertainty on the viral onslaught killing over a million people and shows no signs of slowing down coupled high uncertainty in the U.S election, that is supposed to decide the next most powerful world leader, as kept stock traders lingering on their next moves.
Stephen Innes, Chief Global Market Strategist at Axi gave vital notes on the prevailing macros at the world’s most important equity market by saying;
“US equities closed out Q3 with another higher close overnight.
“The statement from US Treasury Secretary Mnuchin saying: ‘one more serious try’ on a fiscal stimulus deal after more talks took place overnight, helped improve investor sentiment.
“The escalator clause could be the special sauce and maybe how the Republicans try to meet the Democrats where they are. And House Speaker Pelosi can still feel like she can claim victory in getting the number closer to her $2.2 trillion targets.”
Global risk appetite gained from positive noises around a stimulus deal from U.S capital as the market was still giving mixed signal from the US presidential debate debacle