Trade Global Stocks as Markets Rally with Virus Threat Wanes

By:
SimpleFX
Published: Feb 6, 2020, 16:28 UTC

Although the Wuhan coronavirus is still a huge global issue, investors have decided that the worst is over

Trade Global Stocks as Markets Rally with Virus Threat Wanes

All U.S. stock exchanges saw gains today, now that the threat has been seemingly reduced.

Multiple investors and strategists acknowledge that although the coronavirus is still a huge threat that is claiming lives, it no longer appears to be an “open-ended risk.” China’s economy is predicted to take a hit, and will undoubtedly drop lower as they continue to feel the full force of this epidemic.

Global markets should bounce back a lot quicker than initially predicted, as already seen with these tentative gains over the past few days.

This creates a perfect environment for trading shares and indices with leverage. All you need is a reliable, fast app that works on every device. With SimpleFX you can plan your strategy on desktop or laptop, and execute it anytime with your mobile device.

SimpleFX offers you accounts in all major fiat currencies and eight cryptocurrencies, including increasingly popular Tether. You can transfer your money anywhere at any time.

Stocks on the rise

As the stock markets closed trading on February 5th, the Dow Jones had risen by 1.68%, S&P 500 rose by 1.13%, and Nasdaq rose by 0.43%.

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This is the third day that the S&P 500 rallied, and it has fully recovered after drops caused by the coronavirus over the last couple of weeks. Trading overall was above average, with just over 8 billion shares being traded today, which is up slightly from the average of the past 22 sessions – 7.7 billion.

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Cosmetics company Coty saw some of the most significant gains today, with shares increasing by 14.5%. This massive rise was due to an above-expectation in their final quarterly report, earning more than was predicted. Their gains contributed significantly to the overall increase of the S&P 500. The healthcare sector saw significant gains as well.

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Not everything was positive, though, and there were also many losses throughout the day. Tesla stocks dropped by 17.18% (27% from Tuesday’s historic heights) after news broke that deliveries on the Model 3 must be delayed due to the coronavirus.

The drop was also the effect of Tesla’s ridiculous appreciation since Friday. This was the second-worst day in Tesla’s seven-year trading history and marked the end of a six-day rally. This massive drop is what limited the gains for Nasdaq, which was hit the hardest by this.

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Social media company Snap also saw shares fall by 14% today. These losses were the result of a disappointing quarter, missing the expected sales of $563 million by $2 million (they brought in only $561 million). They also fell short on their predicted average amount of revenue per individual user, which further added to their losses.

With SimpleFX you can profit whenever the price goes up or down, as you can BUY or SELL any asset using an up to 500x leverage. Shorting Tesla on Wednesday with SimpleFX you could earn a whopping 820%. Investing $1,000 you could cash in $8,305. And many SimpleFX traders did.

Go to SimpleFX.com and sign up for a fully functional demo account or live account in any currency with no minimum deposits. Don’t miss out on this unique stock market run!

About the Author

SimpleFXcontributor

SimpleFX is an international online trading brokerage offering traders from around the world the ability to trade forex and CFDs on a wide array of

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