Investors were cautiously optimistic as GNG TV SP Rallies rose back to 4,300 on Thursday, setting the stage for the beginning of a long-term uptrend. It was the first time this week that the index had broken through 4,300 since its recent slump.
Analysts attributed the rise in the index to upbeat economic data out of the United States and ongoing support from the government to sustain the current recovery. US durable goods orders increased by 0.2% in February, the largest increase since October. This is an encouraging sign that US businesses are looking to expand their operations as demand for their products and services continue to increase. Furthermore, the US Federal Reserve announced on Wednesday that it would extend pandemic-era bond buying program until at least the end of the year as they attempt to support the economic recovery.
The positive news came at a good time for investors who were burned by the market selloff earlier this week. Midway through the week, the GNG TV SP Rallies had slipped below 4,000 before the resilient recovery seen during Thursday’s session. For investors, the rally provides a glimmer of hope that the markets may have finally turned the corner.
However, some analysts remain unconvinced of the sustainability of the current rally, citing short-term volatility as a potential source of risk. This is due to the uncertainty surrounding the roll-out of Covid-19 vaccines and the possibility of a further wave of the virus in the US. Analysts also noted that the market could be susceptible to negative news surrounding the economic growth of countries in the Eurozone.
Overall, investors seem to be taking a cautiously optimistic approach to the markets, betting that the long-term outlook will remain positive despite the short-term turbulence. It remains to be seen whether the GNG TV SP Rallies will continue its rise in the near future, but investors should remain vigilant and patient as the markets attempt to stabilize over the coming weeks.