US Indices rally to start the week
After starting last week with sell offs across the board, US indices today rose as markets remain optimistic as we head into this week’s Fed meeting.
Led by gains in tech and as of writing, the Dow Jones traded 1.3% higher, S&P 500 climbed 1.4% and the Nasdaq gained close to 1.9%. Tesla which was down close to 15% a week ago, climbed 9%, followed by Apple which was up nearly 3% at one point, before falling back to around a 1.5% gain in afternoon trading.
This week will also see the FOMC set interest rates for September, and potentially give further indications on potential new “weapons” which could be used to support the American economy.
Oracle set for a TikTok deal
After looking as though Microsoft would snap up TikTok, reports now suggest that it is Oracle that leads the way in a deal.
To the surprise of some, Oracle confirmed it has struck a deal with the Chinese tech giant TikTok. This comes after President Trump ordered TikTok cease its operations in the United States, unless offloaded to an American company.
Oracle shares were up 4.8% on the news, however it must be stated that the deal still needs to be approved by the U.S. government before being finalised.
OPEC bearish on oil demand
After almost a week of declines, oil prices are once again in the headlines as OPEC released its outlook for energy demand.
The cartel warned that demand will tumble by 9.46 million barrels per day for the remainder of the year as the world continues its battle with COVID-19.
Looking ahead to 2021, OPEC stated, “Risks remain elevated and tilted to the downside, particularly related to the development of COVID-19 infection cases as well as possible cures.”
Crude prices have fallen from $43 – $36 per barrel in the last 2 weeks.
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Senior Market Analyst