On a gloomy Wednesday, Wall Street cautiously opened with an upward trend, as the S&P 500 index, the Dow Jones index, and the Nasdaq technology index all rose by 0.1 percent. The previous trading day had seen the S&P 500 index close at a record high of over 5,500 points, with a p/e ratio of about 25.8 based on the last 12 months’ numbers. This valuation is significantly high compared to historical levels.
Meanwhile, in Helsinki, Finland’s OMXH25GI index had a p/e factor of about 14.6, indicating a relatively lower valuation compared to the US market. Electric car manufacturer Tesla exceeded analysts’ sales forecasts during the previous trading day, resulting in a more than 10 percent increase in its share price.
On this rainy day in June, investors received interesting insights from economic data from the US presented earlier in the week. There were slightly fewer new claims for unemployment benefits than expected – 238,000 instead of forecasted 235,000 – and the US trade balance was better than expected at -75.1 billion dollars instead of -76.5 billion dollars predicted earlier. However, there were also slightly fewer private sector jobs created than anticipated – just 150,000 instead of forecasted 165,000 – despite expectations for growth in this area.
Later in the day on Wednesday afternoon, investors will receive more economic data from the US related to durable goods orders and factory order volumes that will provide further insights into the state of America’s economy after an uncertain period due to COVID-19 pandemic restrictions and uncertainties regarding upcoming elections in November while still monitoring cautiously optimistic sentiments on Wall Street despite ongoing concerns about rising cases globally and uncertainty around how long it would take for vaccines to be widely available across countries worldwide including United States which is one of biggest vaccine manufacturers globally .
