On Wednesday, the 20th of May 2020, all three key indices of Wall St., S&P, Nasdaq and Dow Jones, picked up their fourth session of gains over the past five days, as investors were found to be betting heavily in favour of a smooth recovery from the pandemic-driven forced closures, while the potential for another mouth-watering stimulus from the United States Federal Reserve had added to further bullish wing on investors’ optimism.
In point of fact, as Wednesday’s (May 20th) FOMC minutes had seen the US Central Bank’s pledge to further fiscal support alongside Fed’s Powell’s strident tone to keep flooding the economy with more stimulus until a modest recovery, the benchmark Standard & Poor 500 had wrapped up the day above its 100-day moving average, one of the closely observed indicators, a breach of which often yields further upward spirals, while the gains were across the boards with 11 major S&P sectors heralding a higher tide and the tech-heavy Nasdaq Composite was just 4.5 per cent lower than its all-time closing high reached on February 19th.
Fed’s Powell pledges to more fiscal support; S&P excels 100-day moving average
Meanwhile, since the small-cap Russel 2000 index, a gain of which usually signals a way out of a recession, had outperformed the larger-cap indices following Wednesday’s (May 20th) FOMC meeting, referring to a raft of major policy changes including a near-zero interest-rate to see through a post-pandemic US economy which had still been diving deeper into a recession territory, a Chief Investment Officer at Bokeh Capital Partners Pittsburgh, Kim Forrest said on Wednesday (May 20th), “We have way lower interest rates for the foreseeable future so that effects the multiple that we have to buy discounted stocks at.
And if you give yourself a little bit more time, is it crazy to think everything is going to come back in two years and you are going to hold it three to five years?” Quoting statistics, on Wednesday’s (May 20th) Wall St.
wind down, the trade-sensitive Dow gained 1.52 per cent to 24,575.9 and the S&P 500 surged 1.67 per cent to 2,971.61, while the Nasdaq Composite climbed as much as 2.08 per cent higher to round off Wednesday’s (May 20th) market at 9,375.78.