Wednesday, U.S. stocks rose by over 1% due to growing optimism toward a faster-than-expected recovery of the global economy from the coronavirus pandemic.
The Dow Jones industrial average rebounded 369 points (+ 1.5%) to 24575, the S&P 500 rose 48 points (+ 1.7%) to 2971, and the Nasdaq 100 rose 186 points (+ 2.0%) to 9485.
Energy (+ 3.82%), semiconductors and semiconductor equipment (+ 3.42%) and cars and components (+ 3.16%) performed best. In fact, all 11 sectors of the S&P 500 closed higher.
Arconic (ARNC + 13.02%), MGM Resorts International (MGM + 8.84%), National Oilwell Varco (NOV + 7.97%) and Twitter (TWTR + 7.86%) were top winners. Meanwhile, Becton Dickinson (BDX -7.68%), Kohl’s (KSS -3.91%), Target (TGT -2.87%) and Royal Caribbean Cruises (RCL -3.37%) showed losses.
The largest airline shares – United Airlines (UAL + 5.19%), Delta Air Lines (DAL + 4.41%) and Southwest Airlines (LUV + 5.27%) – were higher.
The Facebook rate (FB + 6.04%) closed at a record high of $ 229.97.
On the technical side, approx. 30.0% (33.8% in the previous session) of stocks in the S&P 500 index above their 200-day moving average and 61.2% (76.0% in the previous session) were above their 20-day moving average.
The protocol of the Federal Reserve’s latest monetary policy found that the economic outlook is still uncertain due to the lingering effects of the coronavirus pandemic on the global economy.
Later today, the U.S. Initial unemployment claims (a decrease to 2,400 million expected), Markit U.S. Production of Hazard Index Purchases (May preliminary reading, expected 39.5), existing home sales (annual rate of 4.22 million units for April expected) and Conference Board Leading Index (-5.4% for the month of April expected) reported.
European stocks were substantially higher, with the Stoxx Europe 600 index at 1.0%. Germany’s DAX rose 1.3%, the UK’s FTSE 100 rose 1.1% and France’s CAC rose 0.9%.
U.S. Treasury prices remained fixed as the benchmark 10-year Treasury yield fell another 3.2 basis points to 0.679%.
Spot gold price added $ 2 to $ 1,747 per. Ounce.
Oil prices charged higher after worries about a supply surplus were eased by an expected 5 million barrels reduction in the U.S. crude oil stocks reported by U.S. Energy Information Administration. U.S. WTI crude oil futures (June) jumped 4.8% to $ 33.49 per share. Barrel.
On the forex front, ICE U.S. The dollar index fell 0.4% on the day to 99.16. Recent Fed meeting reports showed that “the economic impact of the pandemic created an extraordinary amount of uncertainty and significant risks to economic activity in the medium term” and the Fed “was committed to using its full range of tools to support the U.S. economy”