On Tuesday, stocks rose sharply on investors’s hopes for the start of the reopening of the U.S. economy following the COVID-19 lockdowns. Oil prices increased for a fifth straight day.
The Dow Jones Industrial Average traded 350 points higher, or 1.5%. The S&P 500 gained 1.5% while the Nasdaq Composite advanced 1.6%.
“The state openings and case counts peaking, and also ‘earnings confessions’ are all acting to reduce uncertainty,” said Tom Lee, founder and head of research at Fundstrat Global Advisors. “This is, in our view, the primary reason stocks are drifting higher and shifted into the hands of buyers… The market was overwhelmed with sellers, causing the fastest crash ever. So we think risk/reward still favors buyers.”
Shares of companies that would benefit from a reopening of the economy led the way higher… The moves followed Monday’s modest gains on Wall Street. Strength in the biggest U.S. technology companies including Microsoft, Apple, Amazon, and Netflix lifted the broad market out of negative territory. The S&P 500 closed the session 0.4% higher, while the Nasdaq jumped 1.2%.
Those tech shares were higher again in early trading Tuesday.
MacDailyNews Note: Apple’s stock price is again knocking on $300’s door after hitting a low of $212.61 just 44 days ago on March 23, 2020.