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Stocks - Dow Enters Bull Market as Swashbuckling Gains on Wall Street Continue

Published Mar 26, 2020 04:03PM ET Updated Mar 26, 2020 04:14PM ET
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By Yasin Ebrahim 

Investing.com – The swashbuckling gains on Wall Street saw the Dow enter bull-market territory again as investors cast aside a record jump in jobless claims on growing hopes that stimulus will ensure that a widely-expected U.S. recession is short-lived.

The Dow jumped 6.38%, or 1,351 points. The Dow is up about 21% since its most recent low. The S&P 500 surged 6.24% and the Nasdaq Composite rose 5.60%.

In an interview with NBC, Federal Reserve Jerome Powell conceded the U.S. "may well already in a recession," but boosted investor expectations for more stimulus by insisting the central bank had plenty of ammo after it pledged earlier this week to ramp-up its bond-buying program.

"When it comes to lending, we are not going to run out of ammunition,” Powell said. "That just doesn’t happen."

Main Street, meanwhile, could be next up on the Fed's agenda. Powell reportedly said the central bank is working on a Main Street Lending Facility to support smaller businesses, Bloomberg reported.

With the well of monetary policy seemingly at little risk of running dry, and a fiscal boost expected imminently as Congress readies the launch of its $2 trillion stimulus package, investors raised their bullish bets on stock, with the more defensive names like utilities and real estate among the biggest gainers.

Industrials, meanwhile, continued to get a lift from Boeing (NYSE:BA), up 13.5%, as the stimulus bill -- expected to be approved by the House -- will provide the aviation sector with a much-needed fiscal boost.

The rally on Wall Street comes even as Covid-19 infections continued to mount worldwide, with cases in the U.S. surging to nearly 76,000 and deaths topping 1,000. In Italy, the epicenter of the outbreak in Europe, infections surged by 6,153, the most in five days, taking the global tally to above 500,000.

Financials also supported the broad-based rally, led by banking, even as Treasury yields dropped.

JPMorgan (NYSE:JPM) rose 6.7%, Goldman Sachs (NYSE:GS) gained 6.8% and Bank of America (NYSE:BAC) rallied 7.6%.

Stocks - Dow Enters Bull Market as Swashbuckling Gains on Wall Street Continue
 

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Comments (64)
Dan Vrhovac
Dan Vrhovac Mar 27, 2020 9:21AM ET
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With this new injection, people will receive about the same amount of money they did while working, but now they will be sitting on their ******** I just got laid off, i have an option to go back to work, but for 75% less than what i was paid. Or i can collect Unemployment and the $600 and get about the same i was before. I hate sitting at home, but i hate more working for pennies. With an oversupply of people with degrees, companies take advantage of it, and require more for less, like a bachelors for something an associates or some training could cover. Markets took a huge hit for weeks on end, the positive news just foreshadows the future. I do not think we as a whole country are heading for a recession, i think Trump will open up much of the country but NY city, and other hard hit areas will remain on lock down.
jemin An
jemin An Mar 26, 2020 11:45PM ET
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US is using corona pandemic as a chance to print dollar and put liquidities in market. It wii bring rapid change of foreign currency
Steve Marino
Steve Marino Mar 26, 2020 11:45PM ET
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What does that even mean?
jemin An
jemin An Mar 26, 2020 11:45PM ET
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It mean US try to print more dollar, and force down dollar currency, then US natually get advantage in global trading, in other words, for example for China, or other economies, they can suffer the same chaos like Japan in 80', asset bubble burst, global trading collapses, losing jobs, extremely low interest, etc.
Al Vlaj
alvlaj Mar 26, 2020 11:45PM ET
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Steve Marino it means the US is using this situation to monetize the debt and depreciate the dollar. This is what the collapsed Venezula. The US putting other countries at a massive trade disadvantage while potentially stoking hyperinflation in its own country.
Leo Yu
Leo Yu Mar 26, 2020 11:45PM ET
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jemin An thats what we have learned many times alreday from modern history with the US.
Gary Friauf
Gary Friauf Mar 26, 2020 9:34PM ET
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So I'm not a believer in conspiracy theories but hear me out. Before this virus pandemic came about the U.S. and China were dead locked in a trade war. Our economy was doing amazing while China's was struggling. Both sides finally agreed on a phase 1 deal and that was the end of it. Then magically this virus appeared in China and spread rapidly across the globe. Do you think China started this virus knowing very well the economic impact it would have once it hit the U.S. and just possibly hoping the disaster would hurt Trumps re-election chances come November. Maybe I have way to much time on my hands but I'm interested to see if anyone else thinks this is possible.
Ron Warren
Ron Warren Mar 26, 2020 9:34PM ET
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It's entirely possible . Don't forget that Xi swore payback for the trade war and the Hong Kong legislation
travert xavier
travert xavier Mar 26, 2020 9:34PM ET
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doesn't make sense, China is hard hit by the virus, its economy too, and still a large part of Chinese economy is built on export, there is no point in hurting European or us economy for them. nobody is winning from what's happening. except shorts sellers who saw how markets where too optimistic about the virus while it was already spread worldwide. new Virus happen on regular basis, recent others just didn't spread and wasn't as dangerous as this one. Earlier, when the virus was mainly in China there was the same kind of theory about its origin, some people were accusing US to target China and Iran.. just nature in action in my opinion
Steve Marino
Steve Marino Mar 26, 2020 9:34PM ET
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China doesn’t care about their own people. They’ll ****and maim theid own so the government can control everything. I beleive this was introduced by chinese scientists to cause mayhem and take the focus off the trade war in the process. They probably already have a cure as well that they won’t use unless they think it gets out of hand in china.
bolt man
bolt man Mar 26, 2020 9:34PM ET
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I always say we picked the wrong side to support in the war of the pacific
Michael Redden
Michael Redden Mar 26, 2020 9:28PM ET
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Flus last 2 weeks. One big wave and its back to buisness as usual in 1 month
Al Vlaj
alvlaj Mar 26, 2020 9:28PM ET
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Flus last two weeks. Flu seasons last six months.
sandeep varma
sandeep varma Mar 26, 2020 9:11PM ET
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bear mkt and bull mkt...losing its meaning
RAMAKRISHNA RAO VENGALA
RAMAKRISHNA RAO VENGALA Mar 26, 2020 8:59PM ET
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Corona reaching to it's new peaks every day. How can it be a bull market? It's short lived.
Andre Lanza
Andre Lanza Mar 26, 2020 8:35PM ET
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Futures kept at ~ 0%. So interesting
Haresh Chandwani
Haresh Chandwani Mar 26, 2020 8:25PM ET
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The world needs to stop following the Dow! Its gone crazy..
Nate Hookman
Nate Hookman Mar 26, 2020 8:13PM ET
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The first ever 3 week bear market, glad thats over 🤦‍♂️
Derence Ho
Derence Ho Mar 26, 2020 7:47PM ET
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something new, recession rally. lol
 
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