Friday, 05 June, 2020

Coronavirus: U.S. stocks extend rally, TSX dips in early trading

Wall Street surges on hopes of $2 trillion rescue package Dow Posts Largest One-Day Point Gain Ever, Biggest Percentage Gain Since 1933, as Trump Mulls End to Shutdown
Ginger Lawrence | 26 March, 2020, 09:56

Oil prices fell despite the massive pending US economic stimulus package as the coronavirus pandemic hurt USA fuel demand, with traders bracing for further declines.

The Dow Jones Industrial Average gained 496 points on Tuesday, a gain of 2.39 percent over yesterday's close.

The S&P 500 drifted up and down in a relatively tight band and was up less than 1% in midday trading, a day after packing a year's worth of gains into Tuesday as Washington neared a $2 trillion deal to aid the economy. The Nasdaq Composite also had an impressive surge, as it rallied roughly 8 percent to 7,417.86. Communication services dropped 1.59 per cent, representing the worst-performing group.

The major US stock indexes are drifting lower early Wednesday as investors awaited an unprecedented stimulus package to fight the economic impact of the coronavirus.

The number of COVID-19 cases in the United States topped 60,000 as of Wednesday noon, according to the Center for Systems Science and Engineering at Johns Hopkins University.

Still, there were broad gains on Wall Street as the S&P energy index rose almost 10%, the most among the 11 major sectors, tracking a surge in oil prices. The company said it will follow a similar playbook in other countries as the outbreak has spread around the world.

For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. Australia and Southeast Asian markets gained.

Earthquake Off Kurile Islands Causes Small Tsunami
The emergency services also stated while the threat remains, the residents will remain in a safe zone or higher grounds. Jones explained it is "deeper and smaller than the quakes" that caused big trans-Pacific tsunamis in the past.

Economists expect a report Thursday to show a record number of Americans filed for unemployment benefits.

The choppy trading came after the Dow surged more than 2,100 points on Tuesday on hopes that Congress would finally match the Federal Reserve's aggressive response to the coronavirus.

Prices for the 10-Year U.S. Treasury lost ground, raising yields to 0.85% from Tuesday's 0.84%.

Boeing soared 24.3% in part on expectations that it stands to gain from the aid package brokered on Capitol Hill. Other travel-related stocks also stormed higher to recoup a fraction of their huge losses over the last month. The contract rose 48 cents on Wednesday to close at $24.49. Royal Caribbean Cruises jumped 23% but is down 68.2% for the year. It also said sales are bouncing back in China, where the outbreak has eased and most Nike stores have reopened.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., March 20, 2020. The Japanese yen weakened 0.24% versus the greenback at 111.51 per dollar. Brent crude, used to price worldwide oils, declined 22 cents to $29.77 per barrel in London.

All three main US stock indexes jumped more than 5%, bouncing back from a brutal selloff in the previous session on fears of a deep global recession as entire nations shut down to prevent the virus from spreading.