What Trump slump?
Washington may be rocked by one political controversy after another, but that has done little to deter investors from piling back into US stocks following Wednesday’s sharp sell-off.
The three main stock indices all traded firmly in positive territory within minutes of the market’s open.
The S&P 500, which suffered its worst day of selling in 8 months on Wednesday following reports that US President Donald Trump had sought to interfere in an FBI investigation, bounced back 0.4 per cent yesterday and was 0.3 per cent higher after the opening bell.
Ditto for the Nasdaq Composite and the Dow Jones Industrial Average, which tacked on 0.4 per cent and 0.2 per cent respectively.
While the market was gripped earlier this week by concerns over the mounting crisis surrounding the Trump administration and how that would affect his ability to deliver on his pro-growth policies, investors appeared more focus on Friday on rising oil prices and upbeat economic data.
Haven assets like gold and US Treasuries gave back up some of their recent gains as market jitter eased. Gold was down 0.8 per cent at $1,255.48 per troy ounce, while yield on the US 10 year note was up 0.7 basis point to 2.236 per cent.
The dollar was the outlier, however. The DXY index fell for a sixth straight session, dropping 0.2 per cent to 97.85 — its lowest level since the US elections in November.