Junaid Raza Syed (Senior Editor/Department Manager FS)
Global stocks has been totally unpredictable because of how unstable it has been for the past couple of months, however, with the final quarter for this year, stocks seem to be finding its way back most epically in the tech industry.
Global Stock Rises
Last week’s global stocks officially bounced back from the massive losses it faced the week before. Some of the biggest tech companies in the industry finally recovered from the losses they have to deal with.
They are not the only ones to do so, because there retails and travel companies also had a great comeback during its first full trading day when the holiday shopping season officially started.
Most do the indexes continue to climb not just within the United States, but all throughout Asia and Europe. A shocking jump was even seen from the British and European stock despite the Brexit controversy they have been dealing with for the past couple of months now, although the Parliament is yet to approve the said deal.
With tech, retail, and travel companies facing a good news with their stocks rising, the banks have also been having a great quarter so far. This is of course from the enormous slump they experienced a few months ago and their interests are now going up all thanks for the first full trading day of the holiday shopping season as well.
It really is a great opportunity for service providers and retailers, one great example would be Amazon’s 5 percent increase. The S&P 500 index closed 10.2 percent last week and it was reported to be just behind the record that was set last September. That is because this turned out to The the second time that the index dropped this much.
One of the main causes for this is because of how investors are now beginning to doubt if the United States will be able to set their differences aside to work with China over their technology policies as well as other issues that are massively affecting businesses.
President Donald Trump and Chinese President Xi Jinping will even see one another during the summit meeting they both need to go to in Buenos Aires, and hopefully discuss the trade dispute that has been going on for months now.
According to UBS Global Wealth Management’s Chief Investment Office’s strategist Justin Waring, this trade dispute is being priced by the market and no matter how the meeting goes, it will definitely affect the market.
However, the holidays have officially begun and so it will be a great opportunity for some business to have the chance of rising up their stocks. Just like in the retail industry where Nike and Amazon continue to dominate with their stocks going nowhere but upwards.
Wading said that the consumers in the United States are a massive part of the 70 percent gross domestic product or the GDP, so the more the spend this season, the better. In fact, a record has been hit during the Black Friday Sale last weekend when an average shopper approximately spent over a thousand dollars in a single purchase.
Beaten Up Stocks
With the unstable global stocks, there are businesses that have been affected so much that they are now overdue for an oversold bounce. Based on the most recent report from CNBC, statistics have shown how Nvidia, General Electric, and Celgene are having a difficult time bouncing back.
Nvidia is down by 48 percent, General Electric or more commonly known as GE is down by 32 percent, while Celgene is down by 25 percent. It is known to be long overdue since their stocks have been like this ever since the fourth fiscal quarter began last October.
Experts believe that it is very important for them to bounce back as soon as possible or investors may start to get weary and they will lose some. Experts also said that they must take advantage of the holiday season in order to get more sales and their stocks could go higher.
With so much competition in the industry, they definitely need to step their game up or they will totally lose the race. With Nvidia losing the most, recovering is a positivity and even if they don’t increase over it, just having enough to recover from that 48 percent loss is a massive progress.