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

Published 03/26/2020, 04:03 PM
Updated 03/26/2020, 04:14 PM
© Reuters.

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.

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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%.

Latest comments

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.
US is using corona pandemic as a chance to print dollar and put liquidities in market. It wii bring rapid change of foreign currency
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.
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.
thats what we have learned many times alreday from modern history with the US.
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.
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
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.
I always say we picked the wrong side to support in the war of the pacific
Flus last 2 weeks. One big wave and its back to buisness as usual in 1 month
Flus last two weeks. Flu seasons last six months.
bear mkt and bull mkt...losing its meaning
Corona reaching to it's new peaks every day. How can it be a bull market? It's short lived.
Futures kept at ~ 0%. So interesting
The world needs to stop following the Dow! Its gone crazy..
The first ever 3 week bear market, glad thats over 🤦‍♂️
something new, recession rally. lol
suuuure
Mr President could be God, just not realized yet. Ops.
please stop predicting the market. you are not fortune teller.
a bull market and trump is the bull fighter can anyone tell me what happens at the end of a bull fight?
with all these high in the stocks. It sounds familiar to me. an injection that will not take more than a week. enough to fill executives' pockets
Lets get 80% unemployment so that Dow can go 100,000
Once you are starving you might just take a job for anything...most people anyways.
Remember 2016 when Trump won? Was a similar pattern, in that case was one night. They waited for the liquidation and later it recover everything, starting the move that we had for 4 years. Is simple, free money to save corporations not matter what else. This time is the virus. Lets see.
how can throwing money into the markets defeat the virus?
It does not address the virus, that is not the name of it, it is a stimulus bill. To buy 100,000 beds, 10.million dollars, nah, too much, we busy giving the peoples money (derived as a loan by Chinese gov purchase of treasuries, wink. Wink, as the peoples government has no money, (debt belongs to those responsible for its guidance, which is the people)) to corporations. In order to prop up liquid assets, in order to fire the consumer spending to save the economy bubble 😐😏 to keep America just barely funtioning again. We have to do that. Its been done before, works for a short period and then, overvalued assets begin to loose value.I call it QE 4.... analogy: Add more heroin {debt} to a nearly dead heroin addict and he appears to be alive once more....
The heroin addict feels and looks awful when faced with food. And, well, it's a long way down without junk....
The Virus is not the problem the Msm and the Dems are the Whole Problem!
was that the shortest bear market ever?
yup.
Yep, and this will be the shortest bull market ever.
So 2 out of 3 currently employed americans filed for unemployment. i hope you know that at least half of those unemployment claims were from employed americans. Ask your friends for they are the proif
This is gonna crash again
Trump is saving the world from the virus and possible recession!
Stable genius to the rescue!
trump will count many deaths by 12/04 and US stock market will slide
the rise in the US market is temporary will fall a lot of wood
12% drop tomorrow?
Perhaps +5%?! Dead cat is alive? Who knows, such crazy market
Hard to imagine this dead cat getting much more air. Today’s end of session jump looked like a bunch of bulltrap to me.
Depends when the 2 trillion burn in ash, but it is a big cake
Bull market will last as long as people believe that stimulus or the market itself can largely make up for having large swaths of our economy shut down. If that works long term we shoukd adopt a three day work week and take a lot more vacations.
I'm with ya there
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