The investors are trading in the U.S. stock market on first-come-first-serve basis for any fundamentals they are coming across, which means they are acting instantly on whatever economic indicator is released or any other statement which is released from the side of the FED or U.S. defense ministry.
The S&P 500 index rose by nearly 1 percent in the U.S. session on Wednesday as the Beige Book was released, indicating that the stability is there in the economy to a certain extent where the growth outlook is fairly decent while the consumption from the consumers has been modest to moderate after the second quarter of 2013.
Amidst the rising speculation of what would be the stance of the U.S. military towards Syria and whether or not the FED would be cutting off its heavy stimulus plan this month, the markets are responding to each and every fundamental and are still in range.
The S&P 500 index tested the 1654 level yesterday where sellers started entering the market again and would keep shorting the market as long as it does not move and sustain above the 1667 critical resistance level.
Automobile & Technology Shares Up
The Ford Motor Company and General Motors witnessed a sharp bullish move on Wednesday where they gained around 3.8% after their sales figures beat the forecasted numbers. On the other hand, technology firms including Micron and SanDisk soared nearly 3.6% after a competitor firm announced the shutting down of its factory in China. The demand for substitute shares is being witnessed, where investors are going after the survival of the fittest phenomenon.
Citigroup and U.S. Equities
The U.S. equities have been downgraded by Citigroup Inc. where according to the firm the valuations are not that attractive, as they are in other economies across the world. On the flipside, the U.K. and especially the emerging markets are upgraded by Citigroup that are apparently the best available alternative for the investors if they are looking forward to have more returns on these cheapest major regions.
However, all eyes are on the employment numbers of the U.S. that are set to be released this Friday, where the increase in non-farm payrolls could certainly boost the dollar index where major currency pairs would fall badly.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org