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US stocks rose after bond yields rose slightly and Europe and China announced additional stimulus plans to support their economies as a result of a global trade war. the Dow (UNDUE) ends the day with a gain of 1.3%. the S & P 500 (SPX) increased by 1.4% and Nasdaq (COMP) was up 1.7%
China's National Development and Reform Commission announced on Friday that it would strengthen stimulus measures aimed at strengthening the country's economy, stabilizing employment and boosting the country's disposable incomes. population. Although China did not elaborate further, this was enough to dispel investors' fears about the damage caused by the trade war to the world economy.
A head of the European Central Bank announced Thursday night that he will announce important stimulus next month. The ECB had already announced plans, but Ollie Rehn, governor of the Finnish central bank, told The Wall Street Journal that the boost would be better than what investors expected, adding that an ambitious and bold plan would be more effective than a series of small movements.
This week has given investors a boost. Despite gains on Tuesday and the last two days, the Dow Jones still lost 1.5% for the week. The Nasdaq and the S & P 500 were down 0.8% and 1% respectively. All three indexes fell for three consecutive weeks.
CNN Business's fear and greed index continues to show that investors are motivated by "extreme fear".
The Dow closed up 100 points in a delirious session on Thursday, as mixed signals in the economy confused investors. Inventories were up all day.
On Wednesday, stocks recorded their worst day of the year. The Dow Jones was down 800 points and the S & P 500 as a whole lost 3%. The bond market issued a recession warning, with the 10-year Treasury yield falling short of the 2-year Treasury yield. This rare scenario, called the inverse yield curve, preceded each recession of the modern era.
On Tuesday, stocks climbed. The Dow rose nearly 400 points after the Trump administration postponed some tariffs on technology products. But the Dow lost 400 points on Monday in a late-day rout as investors feared an escalation of the trade war.
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