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Comic: Federal Reserve Stimulus Drives Wall Street Towards All-Time Highs

Published 07/11/2020, 07:29 AM
Updated 07/12/2020, 08:23 AM

By Jesse Cohen

Investing.com - Stocks on Wall Street notched their second weekly gain in a row as the economy continues to recover from the Covid-19 pandemic.

The Dow Jones Industrial Average rose 1% for the week while the S&P 500 jumped 1.8% in the same time period.

The tech-heavy Nasdaq Composite, meanwhile, climbed 4% on the week to end at another record high, boosted by gains in Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX).

Stocks have rallied sharply in recent months, with all three benchmarks up more than 40% from their lows set on March 23 - when coronavirus-related lockdowns shocked the stock market - as a barrage of stimulus from the Federal Reserve stoked risk appetite.

The U.S. central bank slashed interest rates to zero and rolled out around $2 trillion in stimulus to support the economy in the wake of the coronavirus crisis.

However, many market experts have warned the rally could be tested with the start of the second-quarter earnings season on Wall Street next week.

JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) report their results on Tuesday, followed by Goldman Sachs (NYSE:GS) on Wednesday.

Thursday will see Bank of America (NYSE:BAC) and Morgan Stanley (NYSE:MS) report their results, with Netflix then due after the closing bell.

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Latest comments

Why is it called comic?
This is why you follow strict stop loss rules. Buy weakness in the midst of strength and raise cash when necessary.
One thing is for sure : There is uncertainty about the direction of the market. Best to step aside till big players decide on it. No need to save savings. My prediction is a range of 2.900 - 3.200 for SP500 till the elections.
no need to risk savings..
FOMO risk savings to be rich
Greespan started it. It’ll collapse if fed stops.
remember the briefcase indicator?
and this is supposed to be funny to make it ok?...you have no idea whats coming lackeys
Anyone thats been trading long enough should know by now you dont listen to market analysts or their predictions. Even goldman sacs are wrong about target prices and why markets move up and down. When a market analysts says “wall street moved higher today due to fed stimulus.” Thats just an opinion theres tons of factors for why the markets are acting and behaving the way they are. First off every other week we have a possible vaccine tgen we dont which has obviously caused volatility in the markets. VIX index has been high hanging around 27-29. Virus cases keep spiking still and theres nothing the US can do about it. The feds will continue to pump QE and gour job is to go a long with it! Buy when they buy
Pretty sure that what the fed is doing is called a pump and dump we are getting pumped now when it dumps lots will lose everything this is illegal but we cant stop it
stock market is place were people come to make fool of themselves, and every few years new breeds of fool come to marker to make easy money. but become monkeys
Actually, are you blind? Ive made a ******this year just off tesla. Yall shouldve bought at 700
The fact is theres been plenty of opprotunites to build a portfolio. Microsoft apple tesla facebook amazon..... they all been rallying through the pandemic the entire time. Yall just dont know where to look
ill buy when it drops below 700
the largest wealth distribution in history. there's a reason why the mainstream media covers only coronavirus and the riots. the average folk knew what was going on, and they would be up in arms.
They are robbing us
sure thing 😃
Ready for amazon and micro earnings report
There is alot of money tax payers will be repaying for all this stimulus...
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