Futures contracts tied to the major US stock indices led to another robust day on Wall Street during Wednesday night’s session on Wall Street and in the midst of the market’s strongest recovery on record.
Dow Jones Industrial Average futures advanced 45 points, indicating an opening gain of less than 0.1% when regular trading resumes on Thursday. The S&P 500 futures pointed to a mild loss of 0.1%, while the Nasdaq-100 futures pointed to an opening slip of 0.25%.
Overnight moves Wednesday night after heavy gains on Wall Street during recent sessions and a historic start in June.
The Dow Jones industrial average on Wednesday jumped 527.24 points, or 2.1
Wednesday’s gains led Dow to a three-day winning streak, raising the blue-chip index to 3.49% during the first three trading days of the month. The S&P 500 listed its first four-day winning series since the beginning of February.
The Nasdaq 100 Index, which tracks the 100 largest Nasdaq Composite non-financial corporations, rose 0.5% to close 0.3% during a record set on February 19. The index has risen more than 43% from an intraday strike on March 23.
Traders say the market’s hot expansion is in large part thanks to optimism about the resumption of the US economy and a barrage of state stimulus.
“May very well be at the turning point of the viral crisis. The month ended with the virus appearing to be under control and with the economy opening faster than expected,” wrote Brad McMillan, chief investment officer at Commonwealth Financial Network. “June will tell you if that trend continues. But right now? Things are looking much better than we could have expected a month ago.”
Data collected by LPL Financial showed that the S&P 500 published its largest 50-day rally in history. LPL’s research also showed that stocks were higher 100% of the time six and 12 months after the previous largest collectors on record.
Percentages of companies that will benefit most from reopens, those that carried the market penalty earlier in the year, have led the large indices higher in recent sessions. Cyclical stocks including energy, economy and industry posted some of the biggest gains on Wednesday with each S&P section up 3%, 3.8% and 3.9%, respectively.
Other reopening shares, such as the airline group, also held. Delta, American and United Airlines jumped 7.8%, 5.6% and 12.5% on Wednesday. These three stocks increased by 26.1%, 11.3% and 26.4% respectively in the past month.
Shares rose on Tuesday and Wednesday despite concerns over the global Covid-19 pandemic, US-China brewing trade tensions and protests partially arose from George Floyd’s death in Minneapolis.
Thursday’s upcoming update on US unemployment requirements threatened to keep this week’s optimism in check.
The Department of Labor is scheduled to release the latest update of the first unemployed claimants at 8:30 ET on Thursday morning. Although economists visited by Dow Jones expect the government to announce another slowdown in the damage rate, the consensus estimate predicts an additional 1.8 million Americans who filed insurance for the week ending May 30.
Last week, the Labor Department reported that an additional 2.1 million Americans had filed claims in the week ending May 23.
– CNBC’s Fred Imbert and Gina Francolla contributed to the reporting.
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