Stocks rebounded Monday after there were some signs of progress in the fight against the novel COVID-19 coronavirus pandemic.
The Dow Jones Industrial Average shot up 7.7 percent, and all 30 stocks in the index climbed, while the S&P 500 and the Nasdaq Composite rose 7 and 7.3 percent, respectively. That's largely a result of New York Gov. Andrew Cuomo (D) reporting that the rate of daily COVID-19 deaths and hospitalizations, as well as the number of patients in intensive care units, may be slowing in the Empire State, which is the epicenter of the U.S. outbreak.
But don't expect the market rebound to be permanent — volatility has been the rule over the last several months, so there will likely be more upswings and downturns along the way, especially because a lot could still change regarding the pandemic. "Everyone is just desperate for good pieces of news," said Peter Cecchini, the chief marketing strategist at Cantor Fitzgerald. "It doesn't necessarily reflect anything fundamental. Nothing's changed." Read more at The Wall Street Journal. Tim O'Donnell
The S&P 500 and the Nasdaq Composite closed at record highs on Tuesday, The Associated Press reports. The former rose 0.9 percent, with the new peak — which surpassed a mark set in September 2018 — coming just months after the markets rapidly plunged on Christmas Eve last year and making up all the lost ground. The Nasdaq climbed 1.3 percent to shatter its previous high set in August 2018. Both markets were coming off long stretches without a record, after bottoming out down nearly 20% at the end of the year.
The S&P 500 and Nasdaq closed at records, marking a resurgence for U.S. stocks after a rout late last year https://t.co/lU2pimf0x4
Stocks have reportedly flourished this year thanks to what The Wall Street Journal writes is a more "accommodative" Federal Reserve. The central bank said earlier this year it was unlikely to raise interest rates, which encouraged investors to take greater risks. The rise was also spurred by a more general confidence in the U.S. economy, per AP.
Overall, on the year, the S&P is up 17 percent, its best start to the year since 1987, per the Journal, while the Nasdaq is up 22 percent, a number it hasn't seen since 1991. Tim O'Donnell