Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

US STOCKS-Wall St climbs on hopeful coronavirus signs, healthcare lift

Published 08/04/2020, 20:06
Updated 08/04/2020, 20:12
US500
-
DJI
-
TSLA
-
IXIC
-
VIX
-
SPXHC
-

* Insurers jump after Bernie Sanders halts campaign
* Real estate leads gains among major S&P 500 sectors
* Dow up 2.89%, S&P 500 up 2.91%, Nasdaq up 2.26%

(Updates to mid-afternoon, changes byline)
By Chuck Mikolajczak
NEW YORK, April 8 (Reuters) - U.S. stock markets climbed on
Wednesday as investors were encouraged by hopeful signs about
the coronavirus outbreak in the United States, with health
insurers getting an additional boost from the announcement that
Democratic presidential candidate Bernie Sanders was suspending
his campaign.
Stocks opened higher after President Donald Trump said
Americans might be getting to the top of the "curve" in relation
to the outbreak, and New York Governor Andrew Cuomo said the
state's efforts at social distancing were working in getting the
virus under control. "Stocks are celebrating good news on the coronavirus front,
that is legitimate, that is fair and they probably should," said
Willie Delwiche, investment strategist at Baird in Milwaukee.
"It is going to be a slow process to get things going again
but right now stocks are breathing a sigh of relief that maybe
the models with death projections from a week or two weeks ago,
maybe those aren't going to pan out."
The Dow Jones Industrial Average .DJI rose 655.78 points,
or 2.89%, to 23,309.64, the S&P 500 .SPX gained 77.31 points,
or 2.91%, to 2,736.72 and the Nasdaq Composite .IXIC added
178.49 points, or 2.26%, to 8,065.75.
After the worst March performance for the S&P 500 in
decades, the benchmark index has bounced back by about 22% the
past two weeks, although its main indicator of future volatility
.VIX remains historically high.
Stocks gained an additional lift as he healthcare sector
.SPXHC gained ground in the wake of Sanders' decision to drop
his campaign for the White House. Sanders' embrace of a Medicare
for all healthcare policy would have essentially abolished
private insurance and had cast a shadow over healthcare stocks
for months. UnitedHealth Group Inc UNH.N jumped 8.1% in the biggest
boost to the Dow, while Anthem ANTM.N climbed 10.8%.
Even with the big gains in recent weeks, in part due to
massive fiscal and monetary stimulus measures, the S&P 500 is
still down about 19% from its record high in mid-February, as
measures to contain the virus brought the U.S. economy to a
virtual halt.
The minutes from two emergency meetings of the Federal
Reserve showed officials grew increasingly concerned by the
swiftness with which the coronavirus outbreak was harming the
U.S. economy and disrupting financial markets, prompting them to
take "forceful action." Top U.S. Democrats in Congress said on Wednesday they would
back the Trump administration's request for $250 billion more in
aid for small businesses if it includes additional money for
hospitals, local governments and food assistance.
The package would add to the $2.3 trillion in stimulus
already approved and meant to make up for the wages and incomes
lost after Americans were ordered to stay home.
Tesla Inc TSLA.O and Boeing Co BA.N supplier Spirit
AeroSystems SPR.N became the latest companies to furlough
workers.
Spirit's shares jumped 10.95%, while Tesla slipped 0.14%.
Advancing issues outnumbered declining ones on the NYSE by a
6.78-to-1 ratio; on Nasdaq, a 4.37-to-1 ratio favored advancers.
The S&P 500 posted 3 new 52-week highs and no new lows; the
Nasdaq Composite recorded 5 new highs and 15 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.