- S&P 500 unofficially closed up 36.95 points, or 1.16%, at 3,230.88.
- Dow Jones unofficially closed up 438.67 points, or 1.62%, at 27,549.65.
- NASDAQ unofficially closed up 104.53 points, or 1.07%, at 9,918.61.
US benchmarks ended sharply higher again on Monday with the NASDAQ printing yet another record daily close, leaps and bounds above the 19th Feb highs as investors cheered the progress that US states have been making in their efforts to reopen form their coronavirus lockdown, including New York City. Also, there are expectations in equity markets that the FOMC will once again underline its commitment to doing whatever is necessary to support the recovery.
Coupled with last Friday’s jobs data record job creation, as a consequence, a short squeeze in the US benchmarks played out. The S&P 500 was adding 38 points, or 1.16%, to finish at 3,230.88 and the Dow Jones Industrial Average putting on an additional 461 points, or 1.62%, to end around 27,549.65. The Nasdaq Composite added 21 points, or 1.07%, to finish near 9,918.61, setting another record close.
At this juncture, the Federal Reserve meeting this week will be held in higher anticipation considering the V-shaped recoveries in data and equity markets. “The consensus expects the Fed to leave policy on hold which will leave the focus on potential future policy moves and the updated economic forecasts”, analysts at ANZ Bank explained.
Avenues for future stimulus could include capping certain yields (YCC), an inflation make up strategy and, as a last resort, negative policy interest rates. Of interest will be the Fed’s updated macroeconomic projections as they will give some flavour as to how deep the central bank expects the economic contraction to be and what the path for recovery will look like.
Stock market technicals
more to come…
Share
