Wall Street Close: US stocks book solid gains on a bid from COVID-19 optimistis
- The Dow Jones Industrial Average added 690.7 points, or 3.2%, to end at 22,327.48.
- S&P 500 put up 85.18 points, or 3.4%, to 2,626.65.
- The Nasdaq Composite Index added 271.77 points, or 3.6%, to 7,774.15.
US benchmarks were booking solid gains on Monday and paring back Friday's losses to ending in positive territory as health care companies Johnson & Johnson and UnitedHealth pull in the bid, leading companies in the war against the 'invisible enemy', COVID-19/
The Dow Jones Industrial Average added 690.7 points, or 3.2%, to end at 22,327.48 while the S&P 500 put up 85.18 points, or 3.4%, to 2,626.65. The Nasdaq Composite Index added 271.77 points, or 3.6%, to 7,774.15. The end of month flows added to last week's 12.8% advance for the Dow, the best since 1938. Rhe S&P 500 climbed 10.3% for its biggest leap since 2008 while the Nasdaq Composite made a 9.1% weekly rise which was the best since March 2009.
An encouraging drop in COVID-19 new confirmed cases spurred on the markets
Markets were enthused by an encouraging drop in COVID-19 new confirmed cases in some European countries raised hopes that lockdowns may be working. However, the US is seen to be heading towards a peak over the next two weeks and markets were encouraged by the US’s decision to extend lockdowns until 30 April. Stimulus remains a key factor for stock markets, cheering an unprecedented amount of fiscal and monetary support from the US Treasury and Fed.
"New COVID-19 cases rose 4,050 in Italy, down from 5,217 on Sunday and a high of 6,153 last Thursday. Spain reported 812 deaths, down slightly from 838 Sunday," analysts at ANZ bank explained. "Whilst the data provide hope that lockdowns are working, experts warn that it will be another two to three weeks before they can tell whether the measures have been successful."