Off the wire
• Majority of U.S. Hispanics experience discrimination, unfair treatment: poll  • Roundup: Foreign media pay close attention to Xi's speech on CPC anniversary  • U.S. senators visit NW Pakistan tribal region  • Feature: Four years on, Kenyan church attack victims calling for gov't aid  • 126 people killed in suicide car bomb attacks in Baghdad  • Tiger kills worker in Spanish zoo  • More than 4,000 asylum seekers in Belgium return home in 2015  • Philippine position on South China Sea self-contradictory: vice speaker of Czech parliament  • China starts new round of anti-graft inspection  • Security tops agenda of Israeli PM's Kenya visit  
You are here: 　 Home

U.S. stocks post big weekly gains after sharp losses on Brexit vote

Xinhua, July 4, 2016 Adjust font size:

U.S. stocks rallied in the past week as global markets rebounded from the previous week's losses after Britain's vote to leave the European Union.

For the week, all three major indices posted big gains, with the Nasdaq rising 3.3 percent and the Dow and the S&P 500 climbing 3.2 percent, the best weekly performance since the week ending Nov. 20, 2015.

The Leave camp won Britain's Brexit referendum last week by obtaining nearly 52 percent of ballots, pulling the country out of the 28-nation bloc after its 43-year membership.

The stunning referendum results sent global markets on a wild descent, and were seen by many economists as a threat to global economic stability.

However, markets showed a sign of recovery Tuesday across the globe after a record 3 trillion U.S. dollars in market capitalization was wiped off in two trading days.

"Perhaps global markets are waking to fact that the global marketplace is unchanged," said Stephen Guilfoyle, managing director at Deep Value, on Wednesday.

The CBOE Volatility Index, often referred to as Wall Street's fear gauge, decreased 5.5 percent to end at 14.77 on Friday.

U.S. stocks all closed nearly 1.5 percent higher from Tuesday to Thursday. Meanwhile, European stocks had also recovered, with Britain's benchmark FTSE 100 Index being completely recovered to pre-vote levels.

On the economic front, U.S. real gross domestic product (GDP) increased at an annual rate of 1.1 percent in the first quarter of 2016, higher than the prior estimate of 0.8 percent, according to the third estimate released by the Commerce Department Tuesday.

U.S. personal consumption expenditures in May increased 53.5 billion dollars, or 0.4 percent, the Commerce Department said Wednesday.

The seasonally adjusted Markit Flash U.S. Manufacturing Purchasing Managers' Index came in at 51.3 in June, slightly below market consensus of 51.4, but up from 50.7 in May.

Meanwhile, the June purchasing managers' index registered 53.2 percent, an increase of 1.9 percentage points from the May reading of 51.3 percent, according to the Institute for Supply Management (ISM) Friday.

"Both ISM and Markit indices suggest manufacturing output growth should resume in the next couple of months, though not yet at a pace likely to support much job growth," said Chris Low, chief economist at FTN Financial, Friday.

U.S. stocks market will be closed Monday for the Independence Day holiday. Endit