(CNN) — The Dow if off to a stronger start on Thursday. Perhaps the past two days of weaker trading were just a pause in the bull market.
The Dow was up about 75 points, or 0.3%, around midday. The S&P 500 and the Nasdaq Composite are up 0.4% and 0.6%, respectively.
Stocks closed in the red on Tuesday and Wednesday, ending a week-long rally even though fundamentals hadn’t really changed. Investors are hoping President Donald Trump and Chinese Premier Xi Jinping will meet at the G-20 summit in Japan later this month and move forward on a resolution to the China-US trade spat. If Xi doesn’t attend, Trump said there would immediately be further tariffs on Chinese imports.
Investors are hopeful that the Fed could boost the stock market. Expectations for a Federal Reserve interest rate cut in July are now at 86%. The central bank is meeting next week, though it is not expected to cut rates at its meeting. Chairman Jerome Powell will probably deliver guidance of an impending cut. If Powell disappoints, markets could become volatile.
Meanwhile, the IPO bonanza continues. Fiverr, an online marketplace for freelancers, made its debut on the New York Stocks Exchange under the ticket “FVRR” after pricing its IPO at $21 a share. The company raised more than $110 million.
The stock is up more than 58%, at over $33 per share.
Oil rising fast
Oil prices are leaving investors with whiplash.
Two tankers were attacked in the Gulf of Oman. That led oil to jump higher, almost paring Wednesday’s losses. Prices have since come down from their highs. US futures for July were last up 1.9% at $52.11 a barrel. On Wednesday, US prices slumped 4% and settled at their lowest level since mid-January, because of worries about excess supply.
“The knee jerk reaction is more a response to the risks associated with higher tensions in the region and prospect of more attacks, than immediate impact on oil supplies,” wrote Craig Erlam, senior market analyst at Oanda, in a note.
Tensions are indeed higher. In May, four ships were targeted in that region.
Oil stocks like Chevron and Exxon Mobil bounced higher. Currencies of oil exporting countries, like the Canadian dollar and Russian ruble, were also stronger.
The-CNN-Wire
™ & © 2019 Cable News Network, Inc., a Time Warner Company. All rights reserved.
