The stock market held bullish gains in afternoon trading Tuesday as Apple, Home Depot, and Microsoft outperformed in the Dow Jones Industrial Average. Additionally, the Nasdaq 100 gapped above its 50-day moving average.
Among the three major stock indexes, the Nasdaq composite led the way, up 3.9%. It’s holding above the 8400 level, which was a potential resistance level to watch headed into Tuesday’s session. The Dow Jones was up 2.2% and the S&P 500 rallied 2.9%.
Apple stock was a solid gainer in the Dow Jones today, up 5%. With Tuesday’s gap above the 50-day moving average, Apple’s technical picture has improved considerably. But it’s still forming the right side of a base, just like Microsoft.
President Donald Trump said in a press conference Monday night that growth in new coronavirus infections stabilized, providing “clear evidence” that mitigation is working in the country.
Tuesday’s rally resumes a sharp rebound from the market lows set on March 23. Since then, the S&P 500 is up 27.5%. Investors have been cheering the apparent progress in the fight against the coronavirus along with unprecedented stimulus from the Federal Reserve.
“The Fed has really pulled out all stops in terms of keeping markets liquid and fluid,” said Gibson Smith, founder of Smith Capital. “My expectation is over the next three to six months, assuming we get the virus contained … we’ll look back on this period of time and realize it was just a moment in time with a lot of volatility and we probably have better times in front of us than worse times.”
MacDailyNews Take: Apple’s gains today were strong indeed. Hopefully a new base has been formed and the COVID-19 situation improves as rapidly as possible!