Stocks have moved sharply higher over the course of morning trading on Wednesday, offsetting the pullback seen in the previous session. With the strong upward move, the Nasdaq and the S&P 500 have reached their best intraday levels in well over two months.
Currently, the major averages are hovering near their best levels of the day. The Dow is up 393.14 points or 1.6 percent at 24,600.00, the Nasdaq is up 172.61 points or 1.9 percent at 9,357.72 and the S&P 500 is up 50.24 points or 1.7 percent at 2,973.18.
The rally on Wall Street partly reflects continued optimism about an economic recovery as states begin to reopen following the coronavirus-induced lockdowns.
Early indications suggest the states that have reopened have not seen a spike in coronavirus cases, which has led to hopes the economy may rebound more quickly than many economists predict.
Meanwhile, traders have largely shrugged off a report raising doubts about Moderna’s (MRNA) potential coronavirus vaccine.
The report from STAT News questioned the validity of the results of Moderna’s vaccine trial that had sent stock markets soaring on Monday.
Positive sentiment was also generated in reaction to earnings news from Lowe’s (LOW), with the home improvement retailer seeing modest strength after reporting first quarter results that exceeded analyst estimates on both the top and bottom lines.
Energy stocks are turning in some of the market’s performances on the day, benefiting from a continued increase by the price of crude oil. Crude for July delivery is jumping $1.39 to $33.35 a barrel, moving higher for the fifth straight session.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index and the NYSE Arca Natural Gas Index have both surged up by 4.3 percent and the NYSE Arca Oil Index has jumped by 4.2 percent.
Substantial strength has also emerged among transportation stocks, as reflected by the 4.1 percent spike by the Dow Jones Transportation Average.
Semiconductor, financial, steel and chemical stocks are also seeing considerable strength, moving higher along with most of the other major sectors.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index advanced by 0.8 percent, while China’s Shanghai Composite Index fell by 0.5 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the German DAX Index has jumped by 1.1 percent, the U.K.’s FTSE 100 Index is up by 0.7 percent and the French CAC 40 Index is up by 0.5 percent.
In the bond market, treasuries have shown a lack of direction over the course of the morning. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, is up by less than a basis point at 0.714 percent.
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