Global Economy Rides Out Trade Turbulence
Dow jumps 1,100 points as Wall Street seesaws on economic outlook
ORLANDO, Fla. (WFTV) - The Dow Jones Industrial Average soared more than 1,100 points Tuesday as investors digested a mixed bag of economic news.
The Dow jumped 1,103.49 points, or 3.4%, to close at 31,502.51. The S&P 500 also saw a big gain, rising 2.9% to 3,915.65. The Nasdaq composite index added 2.7% to 13,044.92.
The market's big move came as investors reacted to a slew of economic reports, including a surprise jump in the number of Americans filing for unemployment benefits.
The Labor Department said initial jobless claims rose by 53,000 to 751,000 last week, a bigger increase than expected. However, the four-week average of claims fell to its lowest level since March.
The report came as investors also digested a report on the nation's manufacturing sector. The Institute for Supply Management said its index of manufacturing activity fell to 52.6 in July, down from 54.1 in June.
Despite the mixed news, investors seemed to focus on the positive aspects of the reports, including the decline in unemployment claims and the continued growth in the manufacturing sector.
"The market is seeing the glass half full," said Ryan Detrani, a portfolio manager at Wells Fargo Advisors. "The unemployment claims number was a little higher than expected, but the four-week average is still trending down. And the manufacturing report showed that the sector is still growing, even if it's not as strong as it was earlier in the year."
The market's big move came as investors also reacted to news that the Federal Reserve is considering cutting interest rates again in the near future. The Fed has kept interest rates low in an effort to stimulate the economy, and some investors believe that the central bank may need to take further action to boost growth.
The big move in the market also came as investors looked ahead to the second half of the year, when the economy is expected to continue growing. The International Monetary Fund has forecast that the global economy will grow by 3.4% this year, down from 3.8% in 2019.
The market's big move also came as investors reacted to news that the number of Americans filing for bankruptcy has risen in recent months. The American Bankruptcy Institute said the number of bankruptcy filings rose by 10% in the second quarter compared to the same period last year.
Despite the mixed news, investors seemed to focus on the positive aspects of the reports, including the decline in unemployment claims and the continued growth in the manufacturing sector.
"The market is seeing the glass half full," said Ryan Detrani, a portfolio manager at Wells Fargo Advisors. "The unemployment claims number was a little higher than expected, but the four-week average is still trending down. And the manufacturing report showed that the sector is still growing, even if it's not as strong as it was earlier in the year."