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Dow rises to 800 points hoping for a coronavirus slowdown adds buoys



U.S. stocks shot higher early Tuesday, extending a powerful event to a second session with growing signs that the spread of the COVID-19 pandemic could be leveled in parts of the world.

Markets were also encouraged by reports of further planned US measures to curb the recessionary effects of closures and closures of companies designed to curb the epidemic.

How does the index perform?

Dow Jones industrial average
US: DJIA
rose 795 points, or 3.5%, to reach 23,478, the S&P 500 index
US: SPX
received 81 points, or 3%, at 2,743.64, while the Nasdaq Composite index
US: COMP
advanced 201

points, or 2.5%, to reach 8,112.

On Tuesday, the Dow rose 1,627.46 points, or 7.7%, the third largest daily gain ever, to finish at 22,679.99. The S&P 500 climbed 175.03 points, or 7%, to finish at 2,663.68 or the highest level since March 13. The Nasdaq Composite rose 540.15 points, or 7.3%, to close at 7,913.24.

With Monday’s rally, the S&P 500 has jumped about 20% from its 52-week low on March 23.

What drives the market?

Iver to buy battered stock grabbed a second straight session on Wall Street, as investors focused on signs of a slowdown in new daily deaths and infections from COVID-19, the deadly disease first identified in Wuhan, China in December.

Italy reported the lowest number of new coronavirus infections in nearly three weeks, after China reported no new deaths, although deaths in Spain increased after falling for four consecutive days.

President Donald Trump said at a news conference on Monday that there is “tremendous light at the end of the tunnel” with 10 different therapeutic agents in active trials. The president said that research to develop vaccines and treatments has accelerated rapidly, and that the idea, combined with a historical package of monetary and fiscal support, can substantiate a call for equities in the short term.

In fact, reports suggested that US lawmakers rush over a so-called Phase 4 aid package for next month that could be worth more than $ 1 trillion to help support the economy and help workers and small businesses, according to Bloomberg.

“US markets also received an extra sly rocket fuel on reports that the US administration was getting ready with another $ 1.5 trillion stimulus plan, which will be launched in May,” Michael Hewson, CMC Markets market analyst, wrote in a daily research report.

These factors have offered some sheltered optimism for bullish investors who are still wrestling with the aftermath of the pandemic that has driven domestic and international economies in recession.

“A recession is still a given; but hopes are rising that it may well be manageable and not turn into a depression, and it will increase airlines and travel agents tomorrow, a sector that has so far had the largest share of huge sales since February 21, “Hewson wrote.

But globally, the number of confirmed cases of COVID-19 increased to more than 1.35 million, spread across more than 100 countries, while deaths peaked at 74,800, according to data collected by Johns Hopkins University. There are more than 368,000 confirmed cases in the United States and nearly 11,000 deaths. And Japan declared an emergency, as expected, in seven of its prefectures to help manage resources to curb the disease.

In US economic news, the NFIB survey, a monthly snapshot of small businesses, found that the optimism index dropped in March to 96.4, a decline of 8.1 points and the largest monthly decline in the survey’s history.

Survey data comes just a week after the US government rolled out a coronavirus rescue package, called the CARES Act, which included $ 350 billion in forgiving loans for small businesses.

In other US economic data, investors will look for a report on jobs for workers’ turnover for another measure of labor market health, due at 10am. Eastern Time after last week’s job report showed an increase in unemployment.

Which layers are in focus?
  • Shares of Carnival Corp.
    US: CCL
    increased again Tuesday. The cruise ship’s share rose almost 22% following a 21% increase on Monday, after Saudi Arabia’s sovereign wealth fund disclosed a 8.2% stake in the company. However, the shares have fallen about 80% so far. Rivals Norwegian Cruise Lines Holdings Ltd.
    US: NCLH
    and Royal Caribbean Cruises Ltd.
    US: RCL
    was also significantly higher early on Tuesday.

  • Declined airline trades were also traded higher Tuesday, with shares in Delta Air Lines Inc.
    US: DAL
    , American Airlines Group Inc.
    US: AAL
    , also United Airlines Holdings Inc.
    USUAL
    more than 11%.

  • Exxon Mobil Corp.
    US: XOM
    said Tuesday that it cut its capex 2020 spending by 20% and lowered its cash costs by 30% to combat the effects of lower oil prices.

  • AT&T Inc..
    US: T
    announced a $ 5.5 billion loan agreement to further isolate it from an economic slowdown and expects to continue paying its dividend.

How are other markets traded?

In the bond markets, the return is on the 10-year US Treasury
BX: TMUBMUSD10Y
increased by approximately 7 points to 0.7%.

Crude oil prices moved higher, with the price of a thin West Texas Intermediate crude for delivery in May
US: CLK20
trading 47 cents, or 1.8%, higher to $ 26.54. In precious metals, the price of one gram of gold is for delivery in June
US: GCM20
rose $ 2.20, or 0.2%, to $ 1,696.60.

The US dollar fell 0.8% compared to a basket of trading peers, according to ICE’s US Dollar
US: DXY

In Europe the shares were traded higher with Stoxx Europe 600
XX: SXXP
wins 3% early on Tuesday.

In Asia, the shares closed significantly higher. China CSI 300
XX: 000,300
rose 2.3%, Hong Kong’s Hang Seng index
HK: HSI
added 2.1% and Japan’s Nikkei 225
JP: NIK
step 2%.


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