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Stocks - Dow Jumps 690 Points Despite U.S. Extending Containment Measures

Published 03/30/2020, 04:10 PM
Updated 03/30/2020, 04:16 PM
© Reuters.

By Yasin Ebrahim

Investing.com – The Dow made a bright start to the week on Monday, with investors weighing the impact of President Trump's move to extend measures to combat the Covid-19 pandemic.

The Dow 3.19%, or 690 points. The S&P 500 added 3.29% and the Nasdaq Composite rose 3.62%.

Over the weekend, President Trump said the U.S. containment measures, which include social distancing, would be extended to April 30 from mid-April.

The move comes just days after Trump previously touted Easter as a "beautiful timeline," to reopen the U.S. While the move is widely expected to help stem the spread of the coronavirus, some appear worried about the prospect of a deeper recession.  

"Amid the prospects of keeping workers home and businesses closed for another 30 days, the market is beginning to price in a more severe recession despite unprecedented stimulus," Stifel said in a note.

Infections in the U.S. jumped 72% to about 148,000 since Friday, according to Johns Hopkins Case Tracker.

While cases worldwide continue to mount, Italy, the epicenter of the outbreak in Europe, offered a glimmer of hope. Italy reported 4,050 infections, compared with 5,217 on Sunday, the lowest daily number of infections in two weeks.

Just days after Trump signed the $2 trillion stimulus deal, the largest aid package in U.S. history, to ensure the economy bounces back quickly from a widely expected recession, investors are seemingly betting on further stimulus from Congress.

House Majority Leader Nancy Pelosi said the fourth coronavirus bill would be about recovery, with aid aimed at supporting infrastructure and opportunities for family and medical leave.

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Healthcare and tech stocks spearheaded the broader market rally, with chip and FANG stocks among the biggest gainers.

Micron Technology (NASDAQ:MU), Qualcomm (NASDAQ:QCOM), NVIDIA (NASDAQ:NVDA) and Advanced Micro Devices Inc (NASDAQ:AMD) were all sharply higher.

The uptick in chip stocks comes against growing fears about a recession in the industry. Citigroup (NYSE:C) forecasts the industry will follow the same pattern as that of the 2008-to-2009 recession; The worst decline will be in the second quarter followed by a recovery in the fourth quarter and the first quarter of next year.

Energy, meanwhile, also participated in the broader rally, even as oil prices plunged to 18-year lows, with no end in sight to the ongoing Saudi Arabia and Russia oil price war at a time when oil demand has been hurt by the coronavirus outbreak.

Latest comments

This is called a DEAD BULL RALLY..After it is done its job, don't ask why the Dow is diving to find a bottom.. which maybe nearby 1000-2000 or nearabout..
Trump talks about tax deductions for business lunches and Pelosi talks about bringing Sales tax deductions. I DO NOT BELIEVE THIS! It's a virus stupid! Put the two of them in a room and don't let them out.
can trump legally keep dumping money into the stock market I've been asking and mo one cant seem to answer this
Of course it is not legal but You need a proof. There is no proof that he forced someone to invest money in stock and even worst thing is market manipulation. That is also not legal but also there is no proof.I mean we all can see that now (clearer than anytime before) but we don’t have proof.
If vaccine is developed in September, after 300,000 US citizen will die then. 150days, 20,000 new patient per day, total impecion is 3 million, and 1% death toll is 300,000. Vaccine maybe useful for global, Africa, South America etc.
chicken with no head is still running
no head...
With Italy's numbers going down, tomorrow it will be a big uptick in stocks
it was a trick, now crude oil is going up, that's good news. Market will go down tomorrow.
covid-19 has now three months,I don't think usa has done nothing to combat it,and now sprung like rocket speed, usa in sleeping mode since three months,I don't know what's happening???
Thank god for Trump
honestly I was ready to ride this up but I didn't see any of it
Infections in the U.S. jumped 72% to about 148,000 since Friday, according to Johns Hopkins Case Tracker. How much since yesterday? Since the rate of growth contracted we're just going to extend the period from a day to every three days- gotta keep that rate up!
Oh hail "Trumulus"!
stock market loves printing. Stock market is the a reflection of economy. no such things as fundamentals
..the bottom will fall out of this market like a trap door. don't be standing on it when it does.
I really wish they'd get "Son Of Mario" off TV... not only IMO disingenuous but of those who didn't want travel stopped -
So many positive catalysts these days....
it's green. why are people complaining?
Dont short Trump youll lose
The market is up again. That's great news. Congratulations on your gains everyone.
President Thanos wants to bring the balance.
Have him bring it on -
Great that it didn't drop like a rock as many projected.Gotta say those who criticized the Prez. for canceling flights trying to protect us based on what occurred should be the first criticized. Fact is, he was right. The house tried adding green deal to stim. package and argued it for days. Now, the same dirt accused the Prez. of having blood on hands? Those who voice such are of low quality. Be ashamed, those who are, follow and admire such despicable people.
so true
I'm a bit relieved you're not an American. I'm sure you're not looking at what others "did not" do.. I can tell you the Democrat party, of which there are so many lacking credibility, lying, accusing the president of things THEY are guilty of, they continue to "resist", as the loathsome one instructed, now accuse him of being to blame re: air travel in the beginning, etc. when they in fact criticized him for having done so. Remember, most people that comment here wish as yourself seem to be of a sosh style thinker that enjoy the capitalist features, boast their health system which is rationed such as Great Britain Britain Canada has are misguided to this particular fact as they have not yet been impacted by this. Ahh, nuff said. You must know all this. If not, read up on the way socialist systems operate and are funded.
the man said it was a hoax
Shouldn't the market jump only to good news and not the other way round?
The market is not rational. It is emotional.
Extended lockdown is bad for the economy
Depends if you are a home body. Going to the park in a group of 3 and being told to leave by cops doesn't work for me.
For me the most interesting thing was always the title of article. Like the author must find explanation for market going up? Like there must be a reason for UP or Down. For example - one day title will be dow plunged 1000pts because of covid-19, and next day the title will be “Dow now up 1000pts because of Covid-19”. One day Dow is down because of Containment Measures and the next day Dow jumps because of Extends Containment Measures. I am just wondering when we hear the news that dow jumps to 100k, (because last country in the world lockdown the border) what would be the next title if dow continue to rise to 200k? Probably “Dow jumps because whole Earth is lock down and now Martians can not come on Earth.”This situation is good for the people who didn’t want to see it before. The market is nothing but a BIG LIE. Now when whole world already entered in reccesion market is up for a week and this virus situation is just on it’s beggining. So when great white sharks see that
... So when great white sharks see that all other traders, like You and me (took the bait) are in buy position, they will dump it all and title will be “dow down because corona virus is continuing to spread”. Like it is not spreading now, like USA is not already on the top. So be smart. Do not think about yourself as a big fish because Sharks will eat You, maybe this time, maybe next time but You will be eaten in the end. If You want to survive better be something like Labroides Dimidiatus.
This is a fake, rigged market. Trump and Fed should be in prison...
go short. bet against the USA. I'll cover it.
What's next? "Chinese and US navy exchange fire at South China Sea, stock market on both end sees record gains" "Russia declares war on Saudi, stock market shrugs off potential for full crude oil supply disruption"?
Gonna probably only happen cuz of the commits building those islands in the shallows against international law, loading them with missiles in attempt to extend, control/own beyond the ocean a thousand miles south of them -'
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