An Interesting Story of Massive Gains in the Stock Market

1. An Interesting Story of Massive Gains in the Stock Market Despite the continuing surge of the US dollar, the stock market has really gained significantly. These and other interesting observations were noted. TradeZero Ocean Place Cable Beach, Unit #1 Nassau, Bahamas

2. The enthusiasm for trading stocks is more now than ever before thanks to the popularity of high tech direct access trading platforms and free online trading. But it’s also important to study the market carefully for successful trades. The Surge of the US Dollar The US dollar is keeping on surging, trading over its 2-year high, but stocks are also hitting records. This is something unheard of. When the dollar surges, it usually affects stocks adversely because a currency getting strengthened causes American exporters to be less competitive abroad. It also affects earnings for multinationals based in the US. But this time, the surging dollar doesn’t seem to be having that effect on stocks. In fact, the major US indices are at all- time highs. Even the coronavirus epidemic that has ravaged China has not halted the progress of the US indexes, though there was some volatility. Experts have the opinion that a dollar that is stronger is also a representation of the monetary policy tightening. Without other factors balancing this, the financial environment could be tightened in a broader manner causing increased volatility. Tightening financial conditions has a negative impact on emerging markets and other assets that are risky. They also cause multiple compression, a condition where the earnings of a company rise but the stock price remains the same. This reduces the stock’s price-to-earnings ratio (P/E ratio). The Amazing Run of Various Indices The ICE US Dollar Index (DXY) hit 99.577, soaring0.1%. Before that it hit 99.72, which was an intraday high, beating its previous high set in early October 2019. It’s now trading at the strongest it has been since May 2017. The index is now up 3.4% year to date. It has also convincingly beaten consensus expectations that projected a decline for 2020. The Dow Jones Industrial Average (DJIA) managed to rise 0.4% on Wednesday while the S&P 500 rose 0.6% or 15.86 points, closing at a record. The Nasdaq Composite Index rose 0.9% or 84.44 points to set a record finish too. On Wednesday, the Dow Jones Industrial Average managed to rise 115.84 points, which is a 0.4% rise. The S&P 500 soared 15.86 points to hit a record close. The Nasdaq Composite secured a record finish and managed to rise 0.9% or 84.44 points. So how far can the dollar rally www.tradezero.co +1.954.944.3885

3. continue before a dent is brought about in the stock market sentiment? As a prominent strategist quoted by MarketWatch noted, the latest instance of equity weakness related to the dollar was brought about following a currency rally that was much sharper. Haven Assets Gaining Too Along with these gains for the dollar and equities, the haven assets such as Treasuries and gold have also gained. Gold futures rose 0.3%, and thus far have soared 5.7%. There is often never a time when the stock market fails to dish out surprises. The current run of the market is such, but with features such as commission free tradingyou don’t need to worry about getting started. www.tradezero.co +1.954.944.3885