Wall Street Close: Run-up with record highs continue amid broad risk recovery
- The DJIA closed with 0.94% gains to about 29,551.
- S&P 500 climbed around 21 points or 0.63%, closing near 3,379.
- The Nasdaq Composite Index put on 0.91%, adding about 87 points to close near 9,726.
US equity benchmarks extended their rally to record highs amid concerns that the coronavirus epidemic a short-term challenge and recovery is confirmed following then. Also increasing the sentiment could be the global central banker’s sustained support for easy money policy.
The US Federal Reserve Chairman Jerome Powell reiterated his cautiously optimistic testimony lines in front of the Senate Banking Committee on Wednesday. The US central bank chief left open the door for strong labor market data while saying, “There is more upside to the US labor participation rate," while also praising the economic strength with the statements like, "There's nothing about the current US economy that is out of kilter or unbalanced."
On the other hand, weakness in Eurozone Industrial Production continued flashing dimming prospects that the ECB is nearing the reversal of its ultra-lose monetary policy.
In a case of coronavirus, the head of the World Health Organization (WHO) Tedros Adhanom Ghebreyesus mentioned that the number of cases of infection with the new coronavirus in China has stabilized, but that apparent slowdown in the epidemic spread should be viewed with "extreme caution".
While also portraying the risk-on, the US 10-year treasury yields rose five basis points (bps) to 1.635%.
Moving further, investors will now keep eyes on Thursday’s January month US Consumer Price Index (CPI) data for fresh impulse. However, this doesn’t dim the prospect of coronavirus headlines to impress/disappoint the market players.
Prices are heading towards 30,000 psychological mark.