Wall Street Close: White House comes to the rescue and stocks bounce
- The DJIA, ended 1,048.79 points, or 5.2%, higher, to 21,237.31.
- The S&P 500 index put on 143.06 points, adding 6%, to close at 2,529.19.
- The Nasdaq closed higher by 430.19 points or 6.2%, at 7,334.78.
US benchmarks rebounded Tuesday following the worst day since the 1987 crash the prior session. Reports of a $1Tr+ stimulus package from the Trump administration and the Fed's establishment of a CPFF, alongside more fiscal stimulus in Europe helped push equities higher. The Federal Reserve's move to provide short term funding to businesses hit by the coronavirus pandemic was also cheered.
The Dow Jones Industrial Average, or DJIA, ended 1,048.79 points, or 5.2%, higher, to 21,237.31. The S&P 500 index put on 143.06 points, adding 6%, to close at 2,529.19. The Nasdaq Composite Index ended higher 430.19 points or 6.2%, at 7,334.78. This leaves the Dow lower by 28% from its Feb 12 record closing high, while the S&P 500 and Nasdaq are down 25% and 26%, respectively, from their Feb 19th highs.
US data was awful
Analysts at ANZ Bank explained that the US retail sales for February dropped 0.5% (the largest fall in a year) against expectation of a lift. "Industrial production for February was up 0.6% but the US Empire index which was released yesterday, and fell by a record amount, provides a better steer on current conditions. Job openings in January lifted to 6963 positions versus expectation of 6400."
DJIA levels
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
