On Tuesday, all three key indices of Wall St. had registered robust gains with Dow leading the charges, as investors appeared to be too optimistic following a better-than-anticipated quarterly earnings’ report from the United States’ largest lender JPMorgan Chase & Co.
In point of fact, as Tuesday’s gain was almost entirely goaded by the quarterly earnings’ report of JPMorgan Chase & Co., which helped the investors look beyond the holocausts of the pandemic outbreak and led to a rally of major financials such as Goldman Sachs and Morgan Stanley ahead of their quarterly earnings’ report for Q2, 2020, scheduled to be released later this week, market participants had also purchased energy and material stocks following a flurry of upbeat economic data from China and EU.
Dow jumps on robust demand outlook; tech stocks rebound in last-minute rally
Citing statistics, on Tuesday’s market closure, the trade-sensitive Dow jumped 2.13 per cent to 26.642.59 and S&P 500 surged 1.34 per cent to 3,197.52, while the tech-heavy Nasdaq composite rose by 0.94 per cent to round off the session at 10,488.58.
Meanwhile, adding that the rising pandemic cases in the United States alongside a shutdown in California had little impacts on Tuesday’s Wall St.
following reveal of a quicker rebound in China and EU industrial activities earlier this week, New York-based TrimTabs Asset Management Chief Executive Bob Shea said on the day’s closing bell, “Today is counterintuitive.
We are reading about California’s economy shutting down and a record spike in cases in Florida, and yet you have energy stocks leading. We’re seeing a mini-rotation into value”. Apart from an upbeat quarterly earnings’ report from JPMorgan Chase & Co., that registered a lower-than-anticipated loss of 51 per cent in Q2, 2020 on a year-on-year basis, a US EIA (Energy Information Administration) report released yesterday saying the US shale production would likely to fall to 7.49 barrels per day in August, remarking a two-year low figure, market participants betted heavily on energy stocks, while upbeat factory activities in Europe and China had added to further bullish wing for the materials’ stock indices.