· S&P 500 rises on economic recovery and vaccine hopes, pulls back from highs
U.S. stocks closed higher on Tuesday on optimism about the development of coronavirus vaccines and a revival of business activity, but the S&P 500 failed to hold above the key psychological level of 3,000points.
The benchmark S&P 500 .SPX had crossed 3,000 for the first time since March 5 before dropping back late in the session.
Stocks pared gains late in the session, after Bloomberg News reported the Trump administration was weighing a range of sanctions on Chinese officials, businesses and financial institutions, reinforcing comments earlier in the day from White House adviser Larry Kudlow.
Kudlow said President Donald Trump was “so miffed with China on virus and other matters that the trade deal is not as important to him as it once was.”
The Dow Jones Industrial Average .DJI rose 529.95 points, or 2.17%, to 24,995.11, the S&P 500 .SPX gained 36.32 points, or 1.23%, to 2,991.77, and the Nasdaq Composite .IXIC added 15.63 points, or 0.17%, to 9,340.22.
· Stock futures flat as investors weigh economy reopening and US-China tensions
U.S. stock futures were flat in overnight trading, as investors juggled optimism about the reopening of the economy and a possible coronavirus vaccine as well as concerns about U.S.-China tensions.
Recent hopes for a return to normal consumer habits has pushed the Dow Jones Industrial Average and S&P 500 to briefly touch key market levels for the first time since early March; however, a escalation of U.S.-Chinese tensions has capped gains.
Dow futures fell about 20 points. The S&P 500 and Nasdaq were also lower, with losses of 5 points and 7 points, respectively.
· European markets close higher on coronavirus vaccine hopes; Tui skyrockets 52%
European stocks closed higher on Tuesday amid growing optimism about economies reopening and a potential coronavirus vaccine.
The pan-European Stoxx 600 closed up by 1% provisionally, with travel and leisure stocks surging 6.8% to lead gains. Most sectors and major bourses were in positive territory.
· Asia Pacific stocks slip as U.S.-China tensions dampen investor sentiment
Stocks in Asia Pacific declined in Wednesday morning trade as investors weighed the potential impact of rising tensions between Washington and Beijing against economies reopening, as coronavirus containment measures are eased.
In Japan, the Nikkei 225 shed 0.35% in early trade while the Topix index dipped 0.16%. Over in South Korea, the Kospi edged 0.29% lower.
Shares in Australia also fell, with the S&P/ASX 200 dropping 1.02%.
Overall, the MSCI Asia-ex Japan index traded 0.21% lower.
Developments in U.S.-China relations were likely watched by investors on Wednesday. A Bloomberg News report said the U.S. was considering sanctions on Chinese firms and officials over the situation in Hong Kong. U.S. President Donald Trump said Tuesday afternoon he would make an announcement about the administration’s response to China’s actions by the end of this week.
Reference: CNBC, Reuters
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