Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. stocks rally on coronavirus drug hopes

Stock MarketsApr 29, 2020 04:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. The floor of the New York Stock Exchange (NYSE) stands empty as the building prepares to close indefinitely due to the coronavirus disease (COVID-19) outbreak in New York

By Stephen Culp (NYSE:CULP)

NEW YORK (Reuters) - Wall Street stock indexes surged on Wednesday as hopes for an effective COVID-19 treatment prompted a broad rally and helped investors look past bleak economic data.

Big tech companies returned to the lead, providing the biggest boost to all three major U.S. stock averages and pushing them closer to their all-time highs reached in February.

All are well within 20% of their record levels, with the tech-heavy Nasdaq (NASDAQ:NDAQ) now within 10% of its high.

Smaller companies, which stand to benefit more from restrictions being lifted on a state-by-state basis, continue to outperform their larger counterparts, with the Russell 2000 (RUT) on track for its sixth straight advance.

Drugmaker Gilead Sciences Inc (O:GILD) announced that its drug remdesivir is showing promise as an effective COVID-19 treatment, giving a boost to the broader market and sending its shares up 6.2%.

"There's an anticipation of a potential return to normalcy, with states talking about procedures to slowly reopen cities and towns and get people spending again," said Matthew Keator, managing partner in the Keator Group, a wealth management firm in Lenox, Massachusetts.

"The market is a forward-looking vehicle and it's starting to look up."

U.S. Federal Reserve wrapped up its two-day monetary policy meeting, leaving key interest rates near zero and vowing to use a "full range" of its tools to aid the economy in the face of a pandemic that poses "considerable" medium term risks.

Stocks slightly trimmed their gains after the Fed's statement.

"Words matter with the Fed, maybe now more than ever," Keator added. "Because of the uncertainty out there, the Fed is one place markets can find certainty as to what they plan on doing and for how long."

The U.S. economy suffered its sharpest decline in 11 years, with first-quarter GDP contracting at a 4.8% quarterly annualized rate according to the Commerce Department, marking the end of the longest U.S. economic expansion on record.

The Dow Jones Industrial Average (DJI) rose 503.57 points, or 2.09%, to 24,605.12, the S&P 500 (SPX) gained 72.69 points, or 2.54%, to 2,936.08 and the Nasdaq Composite (IXIC) added 286.46 points, or 3.33%, to 8,894.19.

Of the 11 major sectors in the S&P 500, nine were in the black, with energy companies (SPNY) enjoying the largest percentage gain.

Earnings season has hit full-stride, with 192 of the companies in the S&P 500 having reported. Of those, 64.6% have beaten consensus estimates, according to Refinitiv data.

In aggregate, first-quarter S&P 500 earnings are seen dropping 15.1 percent from a year ago, a stark reversal from the 6.3% annual growth forecast on Jan. 1, per Refinitiv.

Google parent Alphabet Inc (O:GOOGL) jumped 9.0% after the company reported steady advertising sales and a 13% year-on-year revenue increase.

Boeing Co (N:BA) shares surged 7.8% after the planemaker announced it would shrink its workforce and production to contend with plunging demand.

Ride share company Lyft Inc (O:LYFT) plans to cut 17% of its workforce, according to a Reuters exclusive. Its shares were up 4.2%.

Results from Facebook Inc (O:FB), Microsoft Corp (O:MSFT) and Tesla Inc (O:TSLA) are expected after the closing bell.

Advancing issues outnumbered declining ones on the NYSE by a 6.89-to-1 ratio; on Nasdaq, a 4.81-to-1 ratio favored advancers.

The S&P 500 posted 5 new 52-week highs and no new lows; the Nasdaq Composite recorded 38 new highs and no new lows.

U.S. stocks rally on coronavirus drug hopes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (28)
jemin An
jemin An Apr 29, 2020 6:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hope, war threaten, Kim jong un death, and what is more? I have questions.
Lalit Mahajan
Lalit Mahajan Apr 29, 2020 4:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I am holding my cash. But i know one thing for sure, when i will start buying stocks market will collapse
Varga Róbert
Varga Róbert Apr 29, 2020 2:28PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hopes every day.... Great
dc wei wei dc
dc wei wei dc Apr 29, 2020 1:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
rates unchanged cant lower it even worst for usd
Adel Youssef
Adel Youssef Apr 29, 2020 1:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market didnt respond to huge negative GDP and rallying for hope of bla bla , i think its trick befire the FED speach and rhey wil tke the market all the way down for months to come , we are in supply zone
Roman Cerny
Roman Cerny Apr 29, 2020 1:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Another Gilead report on trials was released even though it is just preliminary and again not conclusive. Same reaction on indexes. I wonder if Securities and Exchange Commission is having a closer look at this development. Because it is way too big coincidence for being it just a coincidence.
Roman Cerny
Roman Cerny Apr 29, 2020 1:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Well same old story as on 17 April. At that moment it looked like the shares are loosing their momentum. What is worse major macro-data were supposed to be released (especially China quaterly GDP) and also an information about record number of dead people in the USA due to coronavirus. So after-market we got the amazing Gilead trials report which in fact was not conclusive at all and did not present anything new. Nevertheless, it was published like something great which will save the human mankind and of course got a lot of attention and main headlines in major investor´s news like Bloomberg, CNBC, WSJ or here...And it did the job - pumped the indexes by 2 % in less thatn 30 minutes. Now Gilead is back. Coincidence? Not at all. Yesterday the markets were down and could have continued to be also today due to major macro (again GDP but this time US or pending home sales etc.) being released today. So what worked last time could do the job also today.
David David
David9 Apr 29, 2020 12:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Last week, they said the same drug didn't work and market fell. Now they said the same drug works. Who knows...next week China finds out the drug doesn't work and markets collapse.
Aether Mass
Aether Mass Apr 29, 2020 12:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So the market trades like a biotech stock now?
bb blast
bb blast Apr 29, 2020 12:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it goes up if there is good news. it goes up if there is bad news.
kerry ryan
kerry ryan Apr 29, 2020 12:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm fortunate Reuters isn't my broker
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email