US stocks rose again Tuesday as Wall Street held onto hopes that the global economy may soon emerge from its coronavirus-induced coma.
The Dow Jones industrial average climbed as much as 378.46 points, or 1.5 percent, to 24,512.20, putting the blue-chip index on pace for its fifth straight day of gains. The S&P 500 and the Nasdaq also jumped as much as 1.4 and 1.1 percent, respectively, after closing three of the last four trading days in the green.
Investors’ spirits have been buoyed by the growing number of US states and European countries that have started to ease lockdowns aimed at stopping the spread of the deadly coronavirus. A spate of hopeful headlines in recent days has appeared to outweigh fears about a second wave of infections that could threaten the market’s recent rally.
“What seems plausible is that equity investors are buying today with a boatload of confidence supported by the gradual lifting of coronavirus lockdown measures around the world, with the European markets also punching higher,” Stephen Innes, chief global market strategist at AxiCorp, said in a commentary.
Tuesday’s rally came despite continued pressure on oil prices amid concerns about storage facilities filling up. West Texas Intermediate crude oil futures fell as low as $10.07 a barrel Tuesday morning before recovering to $13.37 as of 10:04 a.m.
Wall Street also has to digest a slew of corporate earnings reports this week from major companies such as Amazon, BP, Facebook and Alphabet, Google’s parent company. But investors are likely more focused on the improving health data and the potential for more stimulus measures to backstop the coronavirus-battered economy, according to David Bahnsen, chief investment officer of The Bahnsen Group.
“Earnings season does not matter, other than to the extent companies can provide dividend reaffirmation, or provide some macro color,” Bahnsen said. “No surprises can come from current events creating negative impact — it is totally baked in.”
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