Stocks have shown a strong move to the upside in morning trading on Wednesday, regaining ground following the sharp pullback seen over the two previous sessions. The major averages have all climbed firmly in positive territory.
Currently, the major averages are off their best levels but holding on to strong gains. The Dow is up 345.15 points or 1.5 percent at 23,364.03, the Nasdaq is up 168.90 points or 2 percent at 8,432.13 and the S&P 500 is up 46.36 points or 1.7 percent at 2,782.92.
The strength on Wall Street partly reflects a positive reaction to a substantial rebound in oil prices following the historic drop seen earlier this week.
The front month crude oil contract turned negative for the first time in history on Monday, and later month futures showed another substantial move to the downside on Tuesday.
However, crude oil for June delivery has moved sharply higher over the course of this morning after falling near $10 a barrel overnight. Crude for June delivery is currently jumping $2.87 to $14.44 a barrel.
Buying interest has also been generate in reaction to news that the Senate has passed a new bill to provide funding for hospitals and small businesses and expand coronavirus testing.
The $484 billion aid package was approved unanimously by the Senate and now heads to the House, which could approve the bill as soon as Thursday.
President Donald Trump has said he will sign the bill and then plans to begin discussions on additional legislation to provide fiscal relief for states and local governments, increase infrastructure spending, provide tax incentives for restaurants and entertainment businesses and cut payroll taxes.
Gold stocks have moved sharply higher on the day, driving the NYSE Arca Gold Bugs Index up by 5.1 percent to its best intraday level in well over three years.
The rally by gold stocks comes amid a substantial increase by the price of the precious metal, as gold for June delivery is spiking $39.20 to $1,727 an ounce.
The jump in oil prices is also contributing to significant strength among energy stocks, with the NYSE Arca Oil Index and the Philadelphia Oil Service Index surging up by 4.3 percent and 4 percent, respectively.
Semiconductor, networking, software and banking stocks are also seeing considerable strength after turning in some of the market’s worst performances on Tuesday.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index slid by 0.7 percent, while China’s Shanghai Composite Index climbed by 0.6 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.’s FTSE 100 Index has surged up by 2.1 percent, the German DAX Index is up by 1.4 percent and the French CAC 40 Index is up by 1.2 percent.
In the bond market, treasuries are giving back ground after moving notably higher over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3.7 basis points at 0.608 percent.
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