Dow flies on high hopes for a coronavirus vaccine and the reopening of the economy

Dow flies on high hopes for a coronavirus vaccine and the reopening of the economy

The Dow (HINDU) 600 points, or 2.5%, higher and the broader stock market has strengthened, supported by optimism for the continued reopening of the economy and a new potential vaccine against coronavirus.
The S&P 500 (SPX), which is the largest measure of Wall Street, kicked off 2.2% more. The Nasdaq Composite (COMP) it increased by 1.9%.
Although the New York Stock Exchange is a largely symbolic site – stocks are exchanged digitally – reopening after an unprecedented two-month hiatus is signaling that some things are returning to normal. Trading in the New York plan closed on May 18 as the city closed to limit the spread of the coronavirus. It was the first time that the New York stock market had operated entirely electronically.

The economy has been decimated by home orders that have forced businesses to shut down, to put millions of people out of work and to plunge stocks into a bear market. Although the economy remains in the toilet, investors have decided to wear pink glasses in recent times.

Promote market optimism Tuesday, US biotechnology company Novavax (NVAX) he announced that he is starting a human trial for a candidate for the Covid-19 vaccine in Australia. The company’s shares opened 16% higher.

Also helping to lift the spirit of investors, Memorial Day’s trip has been slightly higher than in the past few weeks, giving markets hope that business is starting to come back to life. Travel and leisure companies led Tuesday’s earnings as local economies continued to gradually reopen across America.

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And politicians have pledged to continue pumping the stimulating economy to avoid a collapse.

On Friday, White House economic adviser Kevin Hassett said he expected Congress and President Trump to agree on a “fourth wave” of economic stimulus “sooner rather than later.”

“Risk appetite has improved for a couple of months, partly on hope of a vaccine, but mainly because of expectations that the huge central bank and government stimulus packages announced in response to the Covid-19 pandemic will fuel a rapid recovery in demand, “said Fawad Razaqzada, market analyst at ThinkMarkets.

All that positive market sentiment weighs on traditional safe haven bets like gold, US dollar and US treasury bills.

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