Economic news

U.S. stocks rebound on hopes for further Fed’s stimulus

Wall Street ended Thursday's session up, bouncing back from a sharp sell-off in previous days as weak ISM readings in both manufacturing and services raised fears over the state of the economy. The rebound during the prior session was mainly pushed by a revision in consensus estimates of further easing in the Fed’s forthcoming meeting, as now approximately 90 percent of market participants expect a fresh rate slash. 

The hopes for the additional stimulus incentives came ahead of next week’s Sino-U.S. meeting, as both countries seek to make a deal to get rid off the sticky uncertainty. 

The Dow Jones added 0.47 percent, to 26,201, the S&P 500 grew by 0.80 percent, to 2,910 and the the Nasdaq jumped by 1.12 percent, to 7,872.

Recall, the Wall Street dipped after the Institute for Supply Management reported its non-manufacturing activity shrank from 56.4 in August to a reading of 52.6 in September, marking thus the lowest since August 2016.

The Tesla shares declined by 4.1 percent, in the Q3, as the company sold 97 thousand cars, including 79,600 of Model 3, though experts expected 99,000.

PepsiCo equities grew by almost 3 percent after the world's largest manufacturer of soft drinks reported a decrease in profit in the Q2 and an increase in revenue and both indicators were better than expected.

Constellation Brands securities went down by  6.1 percent. The American producer of alcoholic beverages received a net loss in the 2nd quarter due to the depreciation of its stake in the Canadian Canopy Growth - over the quarter, the value of these assets reduced by $484 million.


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