· Dow rallies more than 500 points for a second day, closes above 25,000 for first time since March
Stocks rose for a second day on Wednesday as Wall Street grew more optimistic about the economy reopening. Shares of companies that benefit from the economic restart led the way.
All 50 states in the U.S. have reopened their economies to some extent. On Tuesday, New Jersey Gov. Phil Murphy said the state would allow professional sports teams to resume practice and competitions.
The Dow Jones Industrial Average jumped 553.16 points, or 2.2%, to 25,548.27. The 30-stock average also closed above 25,000 for the first time since March.
The S&P 500 closed up by 1.5% at 3,036.13 after briefly trading lower. That recovery put the S&P 500 back above its 200-day moving average — a key level watched by traders — and over the 3,000 mark for the first time since March on a closing basis. The Nasdaq Composite gained 0.8% to end the day at 9,412.36.
The S&P 500 was up more than 38% from an intraday low reached on March 23 as news around the economy and a potential coronavirus vaccine improve. The major averages were coming off strong gains in the previous session, with the Dow also jumping more than 500 points on Tuesday.
Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, said Wednesday the U.S. could avoid a second wave of coronavirus later this year.
· Dow futures point to modest gains after index rallies back above 25,000
Futures contracts tied to the Dow Jones Industrial Average and S&P 500 ticked higher Wednesday evening as investors looked to add to Wall Street’s robust gains so far this week.
Dow Jones Industrial Average futures rose 57 points, indicating an opening gain of about 92 points when regular trading resumes on Thursday. S&P 500 futures also pointed to a 0.2% advance on Thursday; Nasdaq-100 futures dipped into negative territory.
· European markets close higher after unveiling of EU’s recovery plan; Renault shares rise 17%
European stocks closed higher Wednesday, following the unveiling of a huge coronavirus recovery package from the EU.
The pan-European Stoxx 600 index finished 0.2% higher with strong gains for the major bourses in Germany, France and the U.K. Bank stocks rising almost 4% to lead gains while health shares declined 2.5% to lead the losses.
Investors digested the European Commission’s plan for a 750 billion euro ($826.5 billion) recovery fund, as the region faces its worst economic crisis since the 1930s.
It came after Germany and France proposed last week to raise common European debt in an effort to support the region’s economic recovery from the coronavirus crisis.
· Asia Pacific stocks rise as U.S.-China tensions ramp up
Stocks in Asia Pacific were higher in Thursday morning trade on the back of an overnight surge on Wall Street as optimism over the reopening of economies buoyed investor sentiment.
In Japan, the Nikkei 225 rose 1.17% as shares of index heavyweight Fast Retailing surged 2.37%. The Topix index also advanced 0.93%. South Korea’s Kospi also added 0.64%.
Meanwhile, the S&P/ASX 200 in Australia gained 0.81%.
Overall, the MSCI Asia ex-Japan index traded 0.29% higher.
Reference: Reuters, CNBC
Thai
Eng