US markets show strong growth on Friday. Over the past three trading days, the Dow Jones industrial index rose by 794 points. US markets rebound index decreased loss for the year almost doubled.
From the beginning, the Dow Jones index fell by more than 10%. Now the index losses for this year is 5.6%. It's still not very good, but it is better to agree.
Other major US stock indices, S & P 500 and the Nasdaq, also rose. Over the past three trading sessions, the S & P 500 showed growth of more than 1.6% each day. So what is it? The temporary market reversal or indeed rebound indices?
1. Oil prices are rising
yesterday, oil prices rose by more than 5% after Iran said it would support an agreement between Saudi Arabia and Russia, to freeze production at the level of January.
Historically, that oil regains away a minor role in the stock markets. However, in recent years the value of shares worldwide rose and fell in unison with the energy prices.
2. The US economy keeps pace
better than expected retail sales data on Friday began a chain of good news about the largest economy in the world. Possibility snizhet recession, people continue to buy goods and houses.
According to government data, in January index of mortgage lending and the volume of construction new homes were high. That again suggests the strengthening of the US economy.
3. Fed finally began to operate
the country's central bank predicts four interest rate increases in the current year. However, recent statements by Janet Yellen and FOMC minutes of the meeting in January show that Fed officials are now much more careful.
But here's the bad news. While the US economy continues to strengthen, the world economy is showing signs of slowing.