Comic: Federal Reserve Stimulus Drives Wall Street Towards All-Time Highs

Comic: Federal Reserve Stimulus Drives Wall Street Towards All-Time Highs

Investing.com  | Jul 11, 2020 21:31

Comic: Federal Reserve Stimulus Drives Wall Street Towards All-Time Highs

By Jesse Cohen

Investing.com - Stocks on Wall Street notched their second weekly gain in a row as the economy continues to recover from the Covid-19 pandemic.

The Dow Jones Industrial Average rose 1% for the week while the S&P 500 jumped 1.8% in the same time period.

The tech-heavy Nasdaq Composite, meanwhile, climbed 4% on the week to end at another record high, boosted by gains in Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX).

Stocks have rallied sharply in recent months, with all three benchmarks up more than 40% from their lows set on March 23 - when coronavirus-related lockdowns shocked the stock market - as a barrage of stimulus from the Federal Reserve stoked risk appetite.

The U.S. central bank slashed interest rates to zero and rolled out around $2 trillion in stimulus to support the economy in the wake of the coronavirus crisis.

However, many market experts have warned the rally could be tested with the start of the second-quarter earnings season on Wall Street next week.

JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) report their results on Tuesday, followed by Goldman Sachs (NYSE:GS) on Wednesday.

Thursday will see Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) report their results, with Netflix then due after the closing bell.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.