S&P 500, Nasdaq hit new RECORD high

[Hamartia Antidote]

https://www.cnn.com/2019/11/01/investing/sp-nasdaq-dow-stock-market-record/index.html

New York (CNN Business)Stocks rallied sharply Friday, and the S&P 500 and the Nasdaq Composite both closed at a fresh all-time high.

Both indexes had already opened at all-time intraday highs, after a better-than-expected jobs report boosted investor sentiment early Friday.

The S&P (SPX) closed up nearly 1% at 3,067 points, logging its third record close of the week. The Nasdaq (COMP) finished 1.1% higher at 8,386 points and surpassed its July high.
While the Dow (INDU) rallied as well, and ended just 12 points below its July record. The index closed up 301 points, or 1.1%.

"Solid October jobs data shows the engine of the US economy is humming along despite elevated global uncertainty, a good sign for future growth as improving hiring conditions fuel consumer spending and confidence," said Ryan Detrick, Senior Market Strategist for LPL Financial.

All three indexes ended the week in the green. For the S&P it was the fourth straight week of gains, while it was the fifth for the Nasdaq.
Investors shrugged off another round of weak manufacturing data from the Institute of Supply Management, which showed the third monthly contraction in a row.

 

[Yaseen1]

it is good for people of u.s,good luck to them

 

[ARMalik]

Its very simple -- the US Fed Reserve cuts interest rates to 1.75 meaning devaluation of US Dollar. When you devalue your currency, Assets including stock usually goes up. In fact this is terrible for the economy because the Price of the stock is too high compared to the 'earnings' it generates.

 

[Yaseen1]

i think in order to deal with china tradewar devaluation will benefit u.s as imports from china will decline as a result,also this economic rule of devaluation resulting from lowering interest rates not apply properly on u.s dollars as it is a reserve currency of almost all countries of world

Its very simple -- the US Fed Reserve cuts interest rates to 1.75 meaning devaluation of US Dollar. When you devalue your currency, Assets including stock usually goes up. In fact this is terrible for the economy because the Price of the stock is too high compared to the 'earnings' it generates.

 

[ARMalik]

i think in order to deal with china tradewar devaluation will benefit u.s as imports from china will decline as a result,also this economic rule of devaluation resulting from lowering interest rates not apply properly on u.s dollars as it is a reserve currency of almost all countries of world

Good points. However, the problem is that the Chinese Government moves yuan's value in proportion to the US dollar. So when the US dollar moves down, usually the Yuan keeps its proportionality with the Dollar. So the US is in a difficult position because every-time they devalue the dollar, investors loose faith in US dollar as the reserve currency.

 

[BATMAN]

yesterday some one on pdf wrote, Pakistan is suffering economically because it's world wide recession.
I invite that person to come forward and explain this.

 

[Hamartia Antidote]

So the US is in a difficult position because every-time they devalue the dollar, investors loose faith in US dollar as the reserve currency.

The rate was almost 0 for years under Obama and investors didn't lose faith. Going from 2.0 to 1.75 isn't going to rattle people as much as being between 0.04 and 0.17 for years.

 

[nahtanbob]

Its very simple -- the US Fed Reserve cuts interest rates to 1.75 meaning devaluation of US Dollar. When you devalue your currency, Assets including stock usually goes up. In fact this is terrible for the economy because the Price of the stock is too high compared to the 'earnings' it generates.

when you devalue your currency your exports are more competitive and your imports get more expensive
beyond that what you say is not true

it is not in the interest of USA to devalue the dollar. that is the main reason for massive trade deficit