On Wednesday, all three key indices of Wall St. had witnessed a broad-based rally, while the benchmark Standard & Poor 500 had rounded off the day above 3,000-level for the first in more than 2-1/2 months, as a further ease of nationwide lockdown had boosted up investors’ morale over an earlier-than-anticipated economic recovery.
In point of fact, Wednesday’s rally in the Wall St. was almost entirely galvanized by an unprecedented rally of the bank stocks, while the S&P 500’s financial index .SPSY, which rose roughly 10 per cent over the past two days and marked up its biggest two-day increases since April 8th-9th, had led the charges.
Apart from the rise of bank stocks with JPMorgan surging as much as 5.8 per cent at its second consecutive day of gain in a row, encouraging signs of a recovery of the the US economy such as a continued ease of lockdowns, rising hopes over a pandemic vaccine human trial alongside a havoc-scale US relief bill to see through the pandemic outbreak, appeared to be driving the recent gains in the Wall St., suggested analysts.
Liquidity, economy hopes heave Wall St. up
Citing statistics, on Wednesday’s Wall St. wind down, the trade-sensitive Dow Jones Industrial Average jumped 2.21 per cent to 25,548.27 and the S&P 500 rose by 1.48 per cent to 3,036.13, wrapping up the day above-3,000 level for the first time since March 5th, while the tech-heavy Nasdaq Composite added 0.77 per cent to curtain off the day at 9,412.36.
Meanwhile, projecting an upward spiral for the US stocks in a near-term outlook, a Chief Market Economist at Spartan Capital Securities in New York, Peter Cardillo said on the day’s Wall St. closure, “It’s all about liquidity and the hopes that the economy will eventually do well. The rally will continue, but I don’t think it will continue without pullbacks. ”