S&P 500 Index opens sharply higher, back above 3,400

Wall Street's main indexes opened decisively higher on Wednesday.
Airline shares post strong gains on aid hopes.
All major sectors of the S&P 500 trade in the positive territory.

Eren Sengezer FXStreet

Major equity indexes in the US started the day sharply higher and erased the majority of the losses they suffered on Tuesday. As of writing, the S&P 500 was up 1.2% on the day at 3,401, the Dow Jones Industrial Average was gaining 1.17% at 28,100 and the Nasdaq Composite was rising 1.32% at 11,439.

Earlier in the day, White House Chief of Staff Mark Meadows said that US President Donald Trump talked to Treasury Secretary Steven Mnuchin about COVID relief for airlines. Meadows further noted that they were unlikely to reach a deal on a comprehensive relief package but added that they were working on standalone bills on 10 things sides agree on.

Boosted by strong gains witnessed in airline stocks, the S&P 500 Industrials Index is up 1.8% on the day. The defensive sectors, Real Estate and Utilities, are posting modest daily gains.

Later in the day, investors will be paying close attention to the minutes of the FOMC's September meeting.

S&P 500 chart (daily)

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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