Advertisment
Stocks surged on Tuesday, adding to their strong gains from last week, as optimism grew about the reopening of the economy and a potential coronavirus vaccine.
The Dow Jones Industrials leaped 529.95 points, or 2.2%, to 24,995.11. The 30-stock average traded at levels not seen since early March, at one point, jumping above 25,000.
The S&P 500 hiked 36.32 points, or 1.6%, to 2,991.77, at one point of the day breaking above 3,000 for the first time since March 5.
The broader index exceeded its 200-day moving average for the first time since March 6. Many technical analysts look at that moving average as a sign of the long-term trend. Rising above it could signal a change in long-term trend from bearish to bullish.
The NASDAQ strengthened 15.63 points to 9,340.22.
The major averages cut their gains in the final hour of trading after a Bloomberg News report said the U.S. was considering sanctions on Chinese firms and officials over the situation in Hong Kong. That report cam after White House National Security Advisor Robert O’Brien said Sunday the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong.
American biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The company said it expects initial results on safety and immune responses in July.
Last week, another biotech Moderna reported positive development on its vaccine trial where all 45 participants had developed coronavirus antibodies. There are 10 vaccines in clinical evaluation and 114 in pre-clinical evaluation.
Some of the biggest gainers were directly tied to the reopening. Carnival shares jumped 12.6%. MGM Resorts climbed 11%. United Airlines and Southwest Airlines rose more than 12% each.
Bank stocks got a boost amid the optimism over the economic reopening. Citigroup and Wells Fargo were both up more than 8.6% while Bank of America and JPMorgan Chase advanced over 7% each. JPMorgan shares hit their session highs after CEO Jamie Dimon said the bank is “very valuable” at current prices.
Data out Tuesday also reinforced the belief that the economy has hit its bottom amid the pandemic. A measure of consumer confidence jumped to 86.6 this month from 85.7 in April, according to the Conference Board. Economists polled by Dow Jones expected consumer confidence of 82.3 in May.
Meanwhile, new home sales in April also topped estimates. Sales of new U.S. single-family homes increased by 623,000 last month, beating estimates of 490,000, according to Dow Jones.
Prices for the 10-Year Treasury dropped, raising yields to 0.69% from Friday’s 0.66%. Treasury prices and yields move in opposite directions.
Oil prices regained 95 cents to $34.20 U.S. a barrel.
Gold prices slipped $26.50 to $1,705.90 U.S. an ounce.
