The US stocks finished session higher on Thursday, 29 October 2020, as investors chased for bargain hunting, thanks to better than expected domestic economic data even as they kept a wary eye on growing coronavirus infections and unease over the upcoming US presidential election.
The rebound came after a more than 3% slide a day earlier in Wall Street’s main indexes, underscoring heightened market volatility ahead of the presidential election next week and growing fears of another COVID slowdown.
Market risk-on mood was supported after official data showed domestic economy grew at an unrivalled pace in the third quarter as the government poured out more than $3 trillion worth of pandemic relief. A separate set of data showed weekly unemployment claims fell more than expected in the latest week.
US Economic Data Front
US GDP Skyrockets By 33.1% In Q3—US real gross domestic product skyrocketed by 33.1% in the third quarter after plunging by 31.4% in the second quarter, the Commerce Department reported on Thursday. The substantial rebound in GDP came as consumer spending bounced back sharply, spiking by 40.7% in the third quarter after plummeting by 33.2% in the second quarter. Increases in private inventory investment, exports, non-residential fixed investment, and residential fixed investment also contributed to the rebound. The positive contributions to GDP were partly offset by decreases in federal government spending and state and local government spending as well as an increase in imports, which are a subtraction in the calculation of GDP. On the inflation front, the report said core consumer prices, which exclude food and energy prices, jumped by 3.5% in the third quarter following a 0.8% drop in the second quarter.
In other data Thursday, new applications for US jobless benefits fell to 751,000 for the week ended October 24, which was better than expected but still well above historical norms.
TREND : WEAK BEARISH / SIDEWAYS
Time : 30/10/2020
Pivot : 1.1699
Technical View : LONG ABOVE 1.1719
Target : 1.1739, 1.1764, 1.1812, 1.1862
Technical View : SHORT BELOW 1.1679
Target : 1.1659, 1.1626, 1.1586, 1.1528