The Dow Jones Industrial Average jumped 553 points, or 2.2%, to finish at 25,548, while the S&P 500 added 1.5%
Stocks rallied yet again on Wednesday, with all three major U.S. stock indices up meaningfully as investors adjust their expectations to the upside, fuelled largely by businesses reopening in stages.
Speculation over another round of fiscal stimulus in the U.S. and a new proposal from the European Union to blunt the impact of the pandemic’s economic toll has also taken centre stage.
The Dow Jones Industrial Average jumped 553 points, or 2.2%, to finish at 25,548. That’s the Dow’s first close above 25,000 since early March. The S&P 500 added 1.5%, finishing above its 200-day moving average, a much-watched technical indicator.
EU works toward a $2 trillion response plan. A new pandemic response plan from the European Union was laid out on Wednesday, proposing a recovery plan amounting to more than $800 billion and a seven-year budget of about $1.2 trillion.
The plan, which needs to be funded and approved by all 27 members of the bloc, would not only provide the obvious fiscal boost that would help stifle the depth of future economic woes, it would strengthen the interconnectedness of Europe in unprecedented ways as richer Northern European countries help shoulder the debt of financially-troubled countries like Greece, Spain and Italy.
Hong Kong no longer independent. In a move with broad geopolitical implications, the U.S. State Department certified to Congress that Hong Kong is no longer operating as an autonomous territory outside of China’s control.
The State Department’s declaration could mean additional sanctions for China, will affect certain high-tech U.S. exports to Hong Kong. It also represents the continued escalation of U.S.-China tensions that have been reignited in 2020.
Some of the market’s hardest-hit (and most volatile) names in the 2020 calendar year soared on Wednesday as traders laid down big bets on companies that would benefit the most – or escape the jaws of financial ruin – from a successful reopening of the U.S. economy.
Gap, Nordstrom and Kohl’s finished as the top three performers in the S&P 500 on the day as each stock rose between 14% and 19%.
