On Tuesday, the Dow Jones Industrial average has climbed from 526 points, or 2.04%. The S&P 500 and the Nasdaq Composite rallied 1.9% and 1.75%, respectively. Stocks related to the reopening of the economy — including airlines, cruise companies and retailers leading the rally.
“It is difficult to keep a well taken care of” stock market down, ” Jim Paulsen, chief investment strategist at the Leuthold Group, told CNBC. “In a context of widespread caution after a rapid decline of 7% in the last few days, the stock market was simultaneously bombarded by the main pillars of support. “
President of the federal Reserve board Jerome Powell’s semi-annual two-day testimony to the Senate banking committee, began on Tuesday. The Federal Reserve has announced to beef up monetary stimulus with direct purchases of corporate bonds, Monday, stimulated feeling.
The markets and bond yields have fallen from their highs following Federal Reserve Chairman Jerome Powell comments that the central bank is fulfilling its corporate bond purchase based on market conditions and he does not want to ” run through the bond market like an elephant. “Powell will have his second day of testimony on Wednesday.
Stocks cut gains amid reports saying that Beijing will close all the schools, in the midst of a resurgence of cases of coronavirus. Investors, for now, are largely shrugging off the slight increase in the number of cases of coronavirus at home and abroad, against the backdrop of better-than-expected economic data.
“The attitude of many Americans seems to be that they are done with the coronavirus, but the coronavirus is not done with us,” Marc Odo, portfolio manager at Swan Global Investments, told CNBC. “The big race in the market is based on everything that is happening to the right and back to normal in no time. However, the regional spike in infections is difficult for the optimism. ”
After last week, declining stocks, the major average are all well in the green so far this week. The Dow Jones Industrial Average is up 2.7% for the week of the date. The S&P 500 and the Nasdaq Composite gained 2.7 and 3.2%, respectively, since Monday.
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