Dow 28k

By Isaac Cohen*

Despite a global economic slowdown and persistent trade tension between the United State and China, just before last Friday’s close, investors pushed the Dow Jones Industrial Average over 28,000 points, the fourth consecutive week of gains. In the last weeks, several positive factors have contributed to overcome the uncertainty and consequent volatility which prevailed in the markets between last May and the first week in October. During that semester, every time the market indexes approached record levels, they were pushed back by some negative event, mainly resulting from the trade tension between the United States and China.

The positive figure of 128,000 new jobs created in October and a rebound in retail sales, together with the statement by the Federal Reserve Chairman Jerome Powell describing a strong US economy, despite the global slowdown and the trade tensions, all have contributed to reduce the fear of recession among investors. Also positive was a statement from the head of the National Economic Council Lawrence Kudlow indicating the United States and China are close to an agreement. This would be beneficial for the US manufacturing and agricultural sectors, which have been directly hurt by the trade confrontation with China.

The gains in the market were widely distributed, including financials, manufacturing, high tech, transportation and heavy equipment. Despite a slump in iPhone sales, Apple led the rally contributing 434 points to the 1,000 point climb in the Dow Jones, between July 11 and November 15. As a result of the rally, Apple’s market value has surpassed the $1.14 trillion of Microsoft’s market value, which made Apple the largest US corporation.

*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.

About Ramón Jiménez

Ramón Jiménez, Managing Editor de MetroLatinoUSA.Com (MLN). Graduado de la Escuela de Periodismo de la Universidad del Distrito de Columbia (UDC). Email: [email protected]

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