Stocks Rise Wednesday: What Wall Street Says

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Inventories increased significantly on Wednesday as optimism over the spread of the coronavirus settled. Several questions remain unanswered after the recession in which the United States is likely to occur.

The top three US indices rose, the S&P 500 posting a substantial 3.4% gain. Crude oil increased 11.26%. Investors were the net sellers of the 10-year covered cash bond, yielding 0.77%.

News from China shows that Wuhan is loosening its lock and that thousands of people are traveling by train as the spread of the virus slows in the country and in the EU. Health experts expect a spike in the number of cases in the coming days in New York City, the epicenter of the virus.

Democratic House Speaker Nancy Pelosi said a $ 1 trillion stimulus bill could soon be passed, in addition to the existing $ 2 trillion bill that is already working in the economy . Small businesses and households are struggling and becoming more and more illiquid day by day. The Tsa gives investors confidence in the government’s ability to slow the economy while everyone is waiting to get the virus under control.

Senator Bernie Sanders abandoned the 2020 presidential election, leaving Senator Joe Biden to be the presumed Democratic candidate. Removing Sanders from the Equation Means Much Less Potential Health Care Regulation, Sending United Health Actions ((A H) – Get a report, Cigna ((THIS) – Get a report and CVS ((CVS) – Get a report up more than 7%, 5% and 4%, respectively.

For the future, the question now is how long will the economic recovery take, what will profits look like in 2021 (they will fall from previous estimates), and what market volatility can be expected in the short term.

Here’s what Wall Street had to say:

Mike Loewengart, Head, Investment Strategy, E * Trade:

“Yesterday marked the deadliest day in the United States’ coronavirus epidemic to date. But the markets seem to weigh the good with the bad. Instead of real-time economic data, we see markets clinging to signs of optimism around the pandemic as the main indices remain in the green and the VIX retreats. If we are indeed at the point of inflection of the curve, taking into account the recent observations of Fauci on the hope of a turnaround next week, we may soon have a better idea of ​​the timing of the recovery “When and in which pockets of the economy will slowly start to recover. Try not to let the recent bullish momentum foster a false sense of confidence. The markets are looking to the future – we still do not know the full fallout from this crisis, “and it is likely that the market will gradually assess changes in economic conditions before they become widespread. ”



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