Some hard-hit countries, including Italy, as well as a handful of US states are temporarily easing home stay orders this week, raising hopes of renewed demand for oil.
All major S&P 500 sub-indices were trading higher, the .SPNY energy sector increasing by 2.3%, but the index is still the first loser in all sectors with a decrease of 35% this year .
Market leading growth stocks such as Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O) and Apple Inc (AAPL.O) increased for a second day, helping to dispel concerns about the latest Chinese-American spitting on the origin of the new coronavirus.
The S&P 500 .SPX climbed about 30% from its March lows thanks to unprecedented stimulus and signs of a plateau in new COVID-19 cases in many parts of the world.
“We are in a hopeful fashion for the rebound that will occur once the economies reopen,” said Jim McDonald, chief investment strategist for Northern Trust in Chicago.
However, many market experts have warned that the rally could be tested amidst the risk of a new wave of viral infections and with mounting evidence of damage to the US economy and businesses.
Tuesday’s data shows that the domestic services sector registered its first contraction in almost 10 and a half years, while the non-manufacturing index of the Institute for Supply Management (ISM) registered a weaker than expected decline.
All eyes will now be on the Labor Department’s report on non-farm monthly wages expected on Friday.
“It all depends on mood swings and hopes of reopening economies. But the problem is, that could change once we get to see some hard numbers, especially the employment report, “said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
With more than half of the S&P 500 companies reporting so far, first-quarter profits are expected to have fallen 12.5% as analysts anticipate a second-quarter profit slump, according to Refinitiv data.
At 11:23 a.m.ET, the Dow Jones Industrial Average .DJI was up 370.42 points, or 1.56%, to 24,120.18, the S&P 500 .SPX was up 45.55 points, or 1, 60% to 2,888.29 and the Nasdaq Composite .IXIC was up 160.93. points, or 1.85%, to 8,871.65.
Apple Skyworks Solutions Inc (SWKS.O) jumped 5.9% after releasing optimistic quarterly results, but warned of a severe pandemic in the quarter.
Pfizer Inc (PFE.N) increased 3% after announcing that a company with its German partner had started delivering doses of its experimental coronavirus vaccines for human testing in the United States.
Growing issues outnumbered declines by 3.74: 1 on the NYSE and a similar ratio on the Nasdaq. The S&P index recorded six new highs over 52 weeks and no new lows, while the Nasdaq recorded 38 new highs and four new lows.
Reports of Medha Singh and Shreyashi Sanyal to Bengaluru; Editing by Anil D’Silva, Saumyadeb Chakrabarty and Shounak Dasgupta
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