Strong quarterly outcomes from retailers on Wednesday led to the increase in stocks with names such as Lowe’s and Target that managed to lift the investor sentiments. The closing number for Dow Jones Industrial Average was somewhere around 240.29 points more than previously recorded earning. This was 0.9 percent higher at 26,202.73.
On the other hand, the S&P 500 managed to gain a hold of 0.8 percent and closed at 2,924.43. For Nasdaq Composite, the proceeds jumped by 0.9 percent while closing at 8,020.21. The major market indexes held to their individual gains way after the market reflected a signal for recession during the final trading hours.
These better-than-expected stock results come when the traders are distressed about the possible onset of economic slowdown for the United States. Fear of a recession has led the investors scrounge off from investing in the riskier assets such as equities while favouring the traditionally safe assets such as Treasurys and gold.
Heritage Capital president, Paul Schatz mentioned that the onset of a mild recession shall start in the year 2020. However, the data acquired from the stock market doesn’t support the onset of a recession just yet.