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
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.