S&P 500 rallies to join Dow in exiting bear market

U.S. equity markets rallied to session highs Wednesday as the S&P 500 exited its bear market helped by a basket of news investors believe will be positive for stocks amid the COVID-19 pandemic. The Dow Jones Industrial Average gained over 770 points, or 3.4 percent, while the S&P 500 rose by 3.4 percent as well and Nasdaq Composite 2.6 percent.

bear marketJonathan Garber for FOXBusiness:

The main catalyst came as Sen. Bernie Sanders announced he was suspending his presidential campaign. Sanders, I-Vt., suspending his campaign leaves former Vice President Joe Biden as the likely nominee to take on President Trump in the November election.

Another supporting factor for equities was oil. West Texas Intermediate crude oil rose 6.18 percent to $25.09 a barrel ahead of Thursday’s key meeting between OPEC and its allies. S&P energy stocks gained nearly 7 percent helping lift the broader index.

Additionally, FOX Business reported the IRS is speeding up printing of stimulus checks which could be delivered as soon as next week, earlier than the Treasury Department’s April 17 initial date.

MacDailyNews Take: Bye-bye, bear market! (Hopefully, that lasts; you never know with this rollercoaster – which has a long way to go.) Apple, up $6.64 (+2.56%) on the day, was a major driver as it makes up approximately 5 percent of the S&P 500.

6 Comments

  1. The virus broke the economy and the Feds put a band-aide on it. It’s not fixed simply because it looks like the rate of increase in infections might be peaking. When do you think people will be able to go back to work? The only thing going on right now is trying to not overwhelm the health care system. Getting the economy back on track is a long way off. This is just a temporary upswing on a downhill road for stocks.

    1. Permit me to control the laws that dictate where the money flows, and which of my friends keep it, and I care not who prints the money.

      me

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