- Dow Jones Industrial Average climbed back 456.94 points, or 2%, to end at 23,475.82.
- S&P 500 added 62.75 points, or 2.3%, to close at 2,799.31.
- The Nasdaq Composite Index also added 232.15 points, or 2.7%, to close at 8,495.38.
Wall Street’s benchmarks were making up some lost territory, recovering from conspicuously critical support levels on the longer-term charts as preferred to shrug of the canaries in the coal mines and instead focussed on whatever positives they could. along with additional US stimulus being agreed, we have seen a sharp turnaround in the energy sector following the unprecedented collapse below zero in the price of oil futures with the market having another crack at the whip.
Consequently, the Dow Jones Industrial Average climbed back 456.94 points, or 2%, to end at 23,475.82 while the S&P 500 added 62.75 points, or 2.3%, to close at 2,799.31. The Nasdaq Composite Index also added 232.15 points, or 2.7%, to close at 8,495.38. The moves took the Dow and S&P 500 from their lowest levels since April 7 and the Nasdaq from its lowest close since April 13.
Senators passed another coronavirus relief package worth around $500 billion for small businesses which are now expected to pass the House of Representatives this Thursday, as President Donald Trump threw his support behind the measure. this gave sentiment a lift while at the same time, there have been some rescue attempts form officials making encouraging statements in the case of the price of oil.
Reasons to stay bearish
However, the markets are not out of the woods yet and the following additional reading explains why:
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WHO chief urges US to reconsider funding, says ‘virus will be with us for a long time’
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USD/JPY holding in familiar territory, yen resilient to bid in USD
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WTI all depends on Cushing storage tanks, eyes on June expiry
“Things look to be calming down in markets after the recovery in oil prices and equities, with bond yield volatility somewhat contained too. But following on from our Weekly, we wonder how sustainable this all is with solvency now a key question across the debt-laden corporate sector, especially in the US,” analysts at ANZ Bank explained. “The Fed and other central banks can lean in and help but they don’t have unlimited resources and we remain guarded about the outlook and question the sustainability of the recent bounce in sentiment, which may not last.”
DJIA levels
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