Wed, 12 Aug 2020

Tcehnology shares all the rage, Wall Street spikes higher

Lola Evans
09 Jul 2020, 08:06 GMT+10

NEW YORK, New York - Despite the number of Covid-19 cases in the United States topping 3 million on Wednesday, with major spikes across several states, the U.S. stock market remained in Disneyland, with stocks continuing to surge.

The Nasdaq Composite again hit a new record high as technology shares were bought up with fervour.

"The market continues to ignore the potential consequences of these spikes in new coronavirus cases," Peter Cardillo, chief market economist at Spartan Capital Securities in New York told Reuters Thomson Wednesday.

"It's overbought," he said. "While I don't expect this market to crash... I think investors at this juncture are playing with fire," he said.

At the close on Wednesday, the Dow Jones Industrial Average was ahead 177.1 points, or 0.68%, at 26,067.28.

The Standard and Poor's 500 rose 24.62 points, or 0.78%, to 3,169.94.

The Nasdaq Composite advanced 148.61 points, or 1.44%, to 10,492.50, and historic high.

The U.S. was sold off sharply, with gains being made by major currencies across the board. In all, the U.S. dollar has fallen 6% so far this year, largely due to the shocking spread of the coronavirus, which has far exceeded that in other countries.

"If we look at the idea of American exceptionalism, that has dimmed dramatically during this crisis," Karl Schamotta, chief market strategist at Cambridge Global Payments told Reuters Thomson. "Growth differentials are tilting against the United States, putting the dollar on the defensive."

The euro rose sharply to 1.1332 by the New York close Wednesday. The British pound accelerated to 1.2614. The Japanese yen was slightly higher at 107.29. The Swiss franc jumped to 0.9385.

The Canadian dollar was higher at 1.3519. The Australian dollar advanced to 0.6981, while the New Zealand dollar firmed to 0.6572.

In Europe, Asia and the UK, shares mostly nose-dived.

In Europe, the German Dax fell 0.97%. The Paris-based CAC 40 was off 1.24%.

In London, the FTSE 100 declined 0.55%.

Asian markets were mixed on Wednesday, although generally lower. The Nikkei 225 in Tokyo was 176.04 points or 0.78% lower at 22,438.65.

In China, the Shanghai Composite gave up 58.10 points or 1.74% to 3,403.44.

The Australian All Ordinaries was down 92.40 points or 1.51% to 6,034.30.

In Hong Kong, the Hang Seng advanced 167.67 points or 0.65% to 26,143.33.

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