Wall Street Close: Bulls back off the ropes

• Dow Jones Industrial Average ended higher by nearly 370 points, or 1.5%, at 24,575.
• The S&P 500 index added 1.7% to 2,972.
• Nasdaq Composite Index added a cool 2.1% to close at 9,376. 

With the focus on American businesses reopening and the coronavirus pandemic beginning to recede, US benchmarks on Wednesday were higher and bulls recouped the losses from Tuesday’s risk-off session. The S&P 500 rallied to close at a 10-week high while the Dow pared back most of its prior day’s losses of some 390 points. 

The day was relatively upbeat all around and investors dried off from the cold water spilt over the vaccine news that came out at the start of the week, preferring to instead concentrate on the positive outcomes of businesses getting back to work. However, to the contrary, there was a late session slide on the back of a bill to delist Chinese companies on US exchanges clearing the Senate. A similar measure to end the Chinese oversight exemption was introduced in the House and Senate last year but did not make it out of committee. “This is important to protect the integrity of US exchanges and US investors,” Sen. Chris Van Hollen, Maryland Democrat and co-sponsor of the bill with Republican Sen. John Kennedy of Louisiana, said last year.

Consequently, the Dow Jones Industrial Average ended higher by nearly 370 points, or 1.5%, at 24,575. This end result was paring back the majority of the 390-points lost in the last hour of trade on Tuesday. The S&P 500 index added 1.7% to 2,972, finishing at its highest level since March 6, Meanwhile, the Nasdaq Composite Index added a cool 2.1% to close at 9,376. 

Federal Open Market Committees minutes

Meanwhile, the Federal Open Market Committees minutes were released on the session. “In short, a generally dovish tone, but no indication that the dovishness will lead to a major change to forward guidance, on QE or the funds rate, as soon as the June meeting. That said, the wording could be tweaked then to make it more dovish without any date- or outcome-based specificity,” analysts at TD Securities explained. 

DJIA levels