Stock market experts from Wall Street identify the biggest danger and how to trade it.
Although equity markets have been mainly positive this year, there is some trepidation about the rebound because the market is still plagued by a number of risk factors.
How should investors approach market trading? Professionals from Wall Street share their best ideas.
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The benchmark indices are closing higher.
The Friday stock market closing saw increases, bringing the key moving averages into a week of gains.
To reach 33,390.97, the Dow Jones Industrial Average increased by 387.40 points, or 1.17%. The Nasdaq Composite increased 1.97% to close at 11,689.01 and the S&P 500 increased 1.61% to 4,045.64.
The Dow finished the week up 1.75 percent. The Nasdaq increased 2.58% while the S&P jumped 1.9%.
When the job market starts to contract in three to four months, according to head economist and strategist at Rosenberg Research David Rosenberg, the stock market will experience a prolonged recovery.
“Right now you have a situation where the stock markets and the credit markets seem to think they have more time to buy before the boom truly brings the economy down,” said Rosenberg on Thursday’s episode of Fast Money on CNBC.
“There is no question that the economy is weak, but it must be deteriorating rapidly. The rate of unemployment must begin to decline. I believe that’s where the trade risk is located, he continued.
The employment situation began 2023 on an unexpectedly positive one, with non-farm payrolls recording the largest growth since July 2022. The Federal Reserve might change course.
An article in the Wall Street Journal claims that there is growing tension between Saudi Arabia and the United Arab Emirates. According to the article, the UAE is mulling leaving OPEC, citing Emirati officials.
The price of Brent crude dropped after the news of the oil cartel’s potential dissolution broke. Prices fell by about 3% at one point on Friday during trading before turning around. The worldwide benchmark recently decreased 0.85% to $84.03.
The two oil-producing countries have reportedly been competing for influence and disagreeing over how to handle the Yemen war.
Following an almost 3% decline, oil prices rose after news that the UAE would quit OPEC.