(Bloomberg) – Interim measures towards economic progress and the fight against the coronavirus have helped to boost US stocks over time.
S&P 500 contracts rose 3.3% at 6:37 a.m. in London. Boeing Co. shares jumped 8.8% in after-hours trading after announcing it would resume production of commercial aircraft at a plant near Seattle next week. Gilead Sciences Inc. jumped 16% on a report describing anecdotal evidence of reduced hospitalizations in Covid-19 patients treated in Chicago with the company’s investigational drug remdesivir.
The Dow Jones Industrial Average saw its futures contracts increase 3.7%, while contracts on the Nasdaq 100, which had previously wiped out its loss for 2020, increased 2.4%. President Donald Trump has released guidelines for reopening the U.S. economy that could allow states and employers to abandon most social distancing practices within four weeks to curb the epidemic.
Investors are on the lookout for good news on the coronavirus and while it is impossible to say how important Gilead is, markets will always try to include it, said Peter Mallouk, President and Chief Investment Officer of Creative Planning, which manages $ 45 billion.
“For the market to grow steadily, it has to see a path so that it is behind us,” said Mallouk. “The only thing that will tell us that if, in one way or another, it runs its course, there is a treatment that significantly improves the mortality rate, or there is a vaccine on the horizon . ”
Apple joined the late rally. The second largest company behind Microsoft, rose 3% in the hours after CEO Tim Cook expressed confidence that the company would emerge from the crisis strongly. Microsoft and Facebook have also advanced.
If sustained, the gains would extend the remarkable rebound in the US equity market from its March lows, a move that pushed the Nasdaq 100 into positive territory for the previous year Thursday. Trading limits imposed by the exchange will prevent further gains if the S&P 500 rises 5% to 2,929.
The vast majority of the rebound came from US mega-capacity companies, particularly in the tech industry. Gauges like the Russell 2000 and the S&P Midcap 400 remain down more than 25% over the year and an equally weighted version of the S&P 500 is down 22%.
The stocks were whipsawed during the session after a fresh batch of weak economic data and poor corporate performance. Federal Reserve officials have issued a pessimistic view of the prospects for the US economy, warning that a recovery will be slow to materialize once social distancing measures are lifted.
“It can take a while, and I mean until 2021, for the consumer to get back on their feet,” Dallas Fed Chairman Robert Kaplan said on Thursday in a Bloomberg TV interview with David Westin.
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