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US Equities rebound over concerns of slowdown in global economic growth
Headline this week:
The three major US equity indices close on records last Friday, as they rebounded from the previous session’s losses amidst concerns of a slowdown in global economic growth. The Dow Jones rose 1.3%, the S&P 500 bounced by about 1.1% and the technology-heavy Nasdaq Composite rose just shy of 1%. The small-cap benchmark Russell 2000 rallied more than 2% on Friday. The yield on the 10-year Treasury rebounded 7 basis points to 1.36%, easing concerns about an economic slowdown. Oil prices rose for a second day on Friday as data showed a draw in U.S. inventories but were heading for a weekly loss amid uncertainty over global supplies after an OPEC+ impasse.
The second quarter’s profits for S&P 500 companies are expected to be up 65% from the same quarter a year ago, according to Refinitiv. The financial sector is kicking off the earnings season with reports from JPMorgan Chase and Goldman Sachs Tuesday. Major banks have recently announced the intention to boost their dividend pay-outs following the Federal Reserve’s approval to lenders as all 23 passed the central bank’s stress test.
China’s cyberspace regulator also announced on Saturday that any company with data that surpasses over 1 million users will be subject to tight security reviews before they can get the approval to list their shares in other countries, clamping down hard on its large “platform economy.” The security review will put a focus on the risks of data being affected, controlled, or manipulated by foreign governments after companies list overseas as cited Cyberspace Administration of China on its website.
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