S&P 500, NASDAQ, and Dow Regained Strength
After gaining in the first two trading days of the week, the S&P 500 (SPY) pulled back on Wednesday amid the dented market sentiment. However, the S&P 500 opened higher on April 12 and rallied to three-week high price levels. Six out of 11 major S&P 500 sectors advanced on Thursday. Strength in the financials, industrials, and IT sectors supported the market, while weakness in the real estate and utilities sectors limited the market gains.
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The market sentiment was weak on Wednesday amid escalating tension between the US and Russia about Syria. However, the sentiment improved on April 12 following a tweet from President Trump clarifying his stand on the attack on Syria. Optimism about the earnings season also improved the market’s risk appetite and boosted bank stocks. On the economic data front, according to the Department of Labor, US initial jobless claims declined to 233,000, which is higher than the expected reading of 231,000. The market is looking forward to the earnings reports from Wells Fargo (WFC), JPMorgan Chase (JPM), and Citigroup (C). The earnings reports are scheduled to be released on Friday.
The CBOE Volatility Index (or VIX) measures uncertainty in the market. The index declined 8.7% to 18.49 on April 12. The index is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” Usually, the index has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
The NASDAQ Composite Index (QQQ) and the Dow Jones Industrial Average (DIA) opened higher on Thursday and moved higher. The concerns about geopolitical tension eased on April 12 and supported the market indices. The NASDAQ Composite Index gained 1.0% and closed the day at 7,140.25. The Dow Jones Industrial Average advanced 1.2% and closed the day at 24,483.05.
Next, we’ll discuss how the S&P 500’s top gainers performed on April 12.