U.S. Stocks Soar on Forecast of Further Stimulus
There was an important rally on Wall Street yesterday. Traders decided to take more risks on Tuesday, helping U.S. stocks extend a rally which began during mid-last week. The German consumer confidence data came out very positive, something which was unexpected. In addition, there was the commencement of a two-day meeting of the Federal Reserve Open Market Committee yesterday. It is expected that the U.S. will go ahead with further stimulus.
The Dow Jones Index gained 0.6%. The S&P 500 made advances of 0.65%. Other top indexes also made important gains.
Investors bought into the top indices and stocks, as the forecast of additional stimulus for the U.S. economy is predicted to help the economy of America and that of other industrialized nations. However, this is not guaranteed. If we look at previous stimulus measures, they have not had a great impact with regards to boosting economic growth. However, in the short-term equities are known to go higher.
Traders should make sure to follow economic events from Europe and Asia both before and while investing in U.S. stocks in the coming hours of trading. It is not guaranteed that there will be another rally today. Therefore, being cautious but optimistic is the wise way to go.
There will be economic data from the U.K. and other leading economies today. As a result, you will need to stay on top of events.
With the ongoing lawsuits between Apple and Samsung, these 2 stocks may be big moves in the hours ahead.