Nasdaq nears 10,000 as Dow drops
Since breaking its February all-time high last Friday, the tech heavy Nasdaq has not looked back. The index has now hit a record high for 3 consecutive sessions. In contrast, the Dow Jones dropped 200 points in trading on Tuesday, with the S&P 500 also slipping.
The Nasdaq has become the first major U.S. index to enter a new bull market after the lows in March.
The rally in U.S. stocks has been helped by the surprising and historic May jobs data which strengthened the hopes of economic recovery post COVID-19.
Oil to drop 20%” says Goldman Sachs
Even after the recent rebound in oil prices, some in the market still believe that another decline could be on the cards. On Tuesday, Goldman Sachs stated that they see “a correction in oil prices on the horizon”.
The bank went on to say , “ we believe the risks to the downside have increased substantially and are now looking for a 15-20% correction which may already be underway after Monday’s modest sell-off.
With fears of a potential second wave of Covid-19, many on the demand side, have been reluctant to fully “refuel” as they fear potential further lockdowns.
Air industry set for $84 billion loss
We can all agree that the airline industry has been one of, if not, “the” biggest loser in 2020.
On Tuesday it was said that Airlines are set to lose close to $84 billion as a result of the coronavirus pandemic. This comes as global lockdowns have limited the need for domestic and overseas travel reducing industry revenues as a result.
In a report by the International Air Transport Association published Tuesday, IATA forecast a 50% decline in revenue, making 2020 the worst year in the sector’s history.
“The goal of a successful trader is to make the best trades. Money is secondary.”Alexander Elder
Gold: Gold continued to climb on Tuesday, gaining another $17 as markets wait for tomorrow’s FOMC meeting.
DAX: Similar to other global stock indices, the DAX fell on Tuesday, as bears began to short the index. Moving averages show that a downward trend could also be on the way. Potentially more declines?