Wall Street closes aimlessly week with biggest gains since April

The final results of the session indicate that the selective index Dow Jones Industrial Average yielded 0.04%, to 24,465.16 points.

On the contrary, the Nasdaq technology increased 0.43%, to 9,324.59 units, and the extended S & P500 advanced 0.24%, to 2,955.45.

In the week as a whole, the Dow Jones gained 3.3%, the Nasdaq increased 3.4% and the S & P500 rose 3.2%, in what were the most important weekly gains since April.

The New York plaza closed its doors today for three days, since Monday is a US holiday.

Operators have been closely monitoring the latest developments in the relationship between the US and China.

Already strained by the new coronavirus pandemic, Sino-US bilateral relations worsened after a proposed Chinese law was introduced to allow the central government to enforce a “national security law” in Hong Kong.

The United States accused China of wanting to “give a fatal blow” to the autonomy of the former British colony and threatened economic reprisals on this new front of conflict.

For Gregori Volokhine, of Meeschaert Financial Services, however, these tensions do not threaten stock market balances.

“Investors have learned a great lesson for years: never listen to geopolitics to find a direction,” he said.

“If trade relations between the US and China deteriorate, that will really weigh on the indexes,” he added, noting that it was not yet the case at the moment.

Indeed, Beijing has repeated that it does not intend to question its commitments made in the agreement signed with Washington in January.

China, which has renounced expressing any objective of growing its economy in 2020, is aware that it is not in a position of strength, several analysts stress.

On the US side, Donald Trump knows that “hardening the tone at the commercial level would have negative effects on the US economy and markets,” said Volokhine.

Trump had made the good condition of the U.S. economy the main argument for his re-election campaign, before the crisis caused by the new coronavirus pandemic.

“But he can harden the tone regarding (China's) relations with Hong Kong or Taiwan without weighing risks on trade relations or stock market indexes,” noted Volokhine.

RN // NFO

Wall Street content closes without direction week with the biggest gains since April appears first in Vision.

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