Wall Street wrapped up its fourth straight week of gains on Friday, reaching its highest levels in four months, despite jittery trade marked by a cautioning by the Federal Reserve.
The week ended with its strongest rally this month, even though trade volume remained low compared to previous years as investors still faced uncertainty over the US recovery.
“This is a very difficult period of time, it is open question as to how long it lasts,” said Dan Greenhaus, chief economist strategist at Miller Tabak.
Traders opened the week on a cheery note, with markets jumping after a report said the US economy had ended its most sustained downturn since World War II in June last year.
The announcement on the end of the recession “heartened investors,” analyst Gregori Volokhine of Meerschaert New York said.
The mood was then tainted after US Federal Reserve on Tuesday cautioned that the US economic recovery had slowed, vowing to take new stimulus measures if necessary, sparking concerns on Wall Street.
The Fed’s warning had an immediate impact on the US dollar, sending the euro higher from US$1.30 on Tuesday to US$1.34 on Friday.
Stock indexes took a second bashing on Thursday after the US Labor Department released figures showing that the number of Americans asking for unemployment benefits rose more than expected last week.
However, Friday saw a very strong rally on the back of manufacturing data, which, although being mostly negative, did offer some hope that a slow recovery was under way.
The week ahead will see new reports on jobless claims and consumer confidence, as investors try to gauge the strength of the US economy, which relies heavily on consumer purchases.
Friday’s ISM manufacturing index is expected to show a continued rise in the key sector that has been the driving power behind the country’s recovery.
For the week, the Dow Jones Industrial Average was up 2.38 percent to 10,860.26. The broader S&P 500 index gained 2.05 percent to 1,148.67.
The technology-rich NASDAQ composite index ramped up 2.83 percent to 2,381.22.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old