Asian Morning: U.S. Stocks Rebound After Wednesday Selloff

Wall Street sign with a building in background
On Thursday, U.S. stocks rebounded following a 3% selloff Wednesday. The Dow Jones Industrial Average gained 139 points (+0.52%) to 26659, the S&P 500 jumped 39 points (+1.19%) to 3310, and the Nasdaq 100 surged 207 points (+1.87%) to 11350.


Dow Jones Industrial Average (Daily Chart) : Under Pressure

Sources: GAIN Capital, TradingView


Investors were encouraged to see more signs in U.S. economic recovery. Official data showed that GDP soared at an annualized rate of 33.1% on quarter in the third quarter (+32.0% expected, -31.4% in the second quarter). Initial Jobless Claims fell to 751,000 for the week ended October 24 (770,000 expected).

Media (+3.3%), Energy (+3.2%) and Technology Hardware & Equipment (+3.06%) sectors performed the best. Alliance Data Systems (ADS +18.92%), CBRE Group (CBRE +16.80%) and Twitter (TWTR +8.04%) are top gainers. Meanwhile, Abiomed (ABMD -10.03%) and eBay (EBAY -7.46%) were top losers.  

Approximately 58% (65% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 12% (30% in the prior session) were trading above their 20-day moving average.

The VIX Index, Wall Street's fear gauge, fell 3.08 points (-7.65%) to 37.2.

In after-market hours, four tech giants released quarterly results. Facebook (FB) lost over 2%, Amazon.com (AMZN) dropped 2%, Apple (AAPL) sank over 4%, while Alphabet (GOOGL) jumped over 6%.

European stocks ended mixed. The Stoxx Europe 600 eased 0.12%, while Germany's DAX 30 gained 0.32%, and France's CAC 40 and the U.K.'s FTSE 100 were little changed.

U.S. Treasury prices came under pressure, as the benchmark 10-year Treasury yield advanced to 0.835% from 0.780% Wednesday.

Spot gold declined $7.62 (-0.41%) to $1,869 an ounce.

U.S. WTI crude futures (December) dropped $1.10 (-2.94%) to $36.29 a barrel, the lowest level since June.

On the forex front, the U.S. dollar showed further strength against other major currencies. The ICE Dollar Index was up for a second session jumping 0.56% to 93.92.

EUR/USD lost the 1.1700 handle as it sank 0.61% to 1.1674. As expected, the European Central Bank kept its deposit facility rate unchanged at -0.50%. In Germany, the jobless rate ticked down to 6.2% in October (6.3% expected) and consumer prices edged up 0.1% on month (+0.0% expected).

USD/JPY rebounded 0.27% to 104.60. Japan's central bank kept its benchmark rate unchanged at -0.10% while downgrading its 2020 GDP growth forecast to -5.5% from -4.7% previously. Also, official data showed that Japan's retail sales slipped 0.1% on month in September (+1.0% expected).

GBP/USD fell 0.41% to 1.2930. On a daily chart it has returned to levels below both 20-day and 50-day moving averages.

AUD/USD declined a further 0.22% to 0.7028, striking against the lower Bollinger band on a daily chart.

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