- Dow Jones Industrial Average jumped about 1,604 points, +7.6%, to close near 22,656.
- S&P 500 put on around 173 points, +6.9%, to end the session around 2,661.
- The Nasdaq Composite Index climbed as well, adding around 535 points, up 7.3%, closing near 7,908.
The US benchmarks were supercharged on Monday with the Dow adding around 1600 points and similar percentile gains in the S&P500 as well as the NASDAQ on hopes that the COVID-19 numbers of new cases are peaking. The weekend updates were showing a slowing in the spread of the virus and the V-shaped recovery that some economists have been forecasting were reverberating in market sentiment at the start of the week.
Consequently, the Dow Jones Industrial Average jumped about 1,604 points, +7.6%, to close near 22,656, while the S&P 500 put on around 173 points, +6.9%, to end the session around 2,661. The Nasdaq Composite Index climbed as well, adding around 535 points, up 7.3%, closing near 7,908. The effect of the lockdown has been supported home delivery companies such as Wayfair Inc. with their stock price taking off by 40% higher on Monday following news the business had more than doubled in late March.
Declining numbers of the death toll in New York City and Europe has the world preying that we have seen the worts of it and hat the bell curve is now on a southerly trajectory. Italy on Saturday reported its lowest daily rise in COVID-19 deaths in nearly two weeks, according to a Reuters report. It also said the number of patients in intensive care fell for the first time.
European data was dismal, PM Johnson in intensive care
Meanwhile, there were some key data released in Europe with Germany’s construction PMI falling sharply into contractionary territory in March. Analysts at ANZ bank explained that it was falling 13.8 pts to 42 and despite the fact that construction sites have not been ordered to shut down (provided workers maintain physical distancing guidelines).
"Meanwhile, German factory orders for February show manufacturing was muddling along before COVID-19 hit, falling 1.4% m/m to be up 1.5% y/y. The March release will be weak. Weak euro data more broadly: Euro area investor confidence fell to its lowest reading on record, down 25.8 pts from March to -42.9. The current situation index fell a whopping 51.7 pts to -66, while expectations lifted marginally, up 4.2 pts from March to -15.8 in April. Weak UK data: UK new car registrations fell 44.4% y/y in March, while the UK’s construction PMI dropped to 39.3 (last: 52.6, mkt: 44)."
Speaking of the UK, the PM Boris Johnson was admitted to intensive care in St. Tomas's Hospital and the pound fell sharply as a result. More on that here:
DJIA levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.