Wall Street snowballs as S&P 500 posts strongest intra-session rise since June

by   |  VIEW 764

Wall Street snowballs as S&P 500 posts strongest intra-session rise since June

On Monday, all three key indices of Wall Street had mushroomed, getting their mitts on a handful of gains with benchmark S&P 500 scoring its steepest one-day surge since June last year as US Treasury bonds market cooled off and investors seemed to be pricing in heavily on defensives such as cyclicals, healthcare and real estates over anticipations that they might have rooms to rally further.

On top of that, optimism appears to be space-diving among American investors after US House of Representatives had voted 219 to 212 to pass a $1.9 trillion pandemic stimulus bill as proposed by the US President Joe Biden earlier in January.

The bill which contains a one-off $1,400 in pay-checks to most adult Americans alongside an additional $400 in state unemployment benefits per-week at least until August 29, has been on its way to secure a jubilant home-run in Democrat-controlled US Senate.

Apart from that, hopes of an earlier-than-anticipated economic recovery had spurred up investors’ morale further after J&J’s single-shot pandemic vaccine candidate had received approval for both mass-scale and emergency usage from US FDA over the weekend.

Wall Street rallies as vaccination drive, stimulus rotate interests to cyclicals

Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow surged 1.95 per cent to 31,535.51 and benchmark S&P 500 jumped 2.38 per cent to 3,901.82, shelving its largest one-day gain in roughly nine months, while tech-heavy Nasdaq climbed 3.01 per cent to 13,588.83, paring some of the losses stomached last week.

Meanwhile, addressing to an unprecedented scale of speculative bets on cyclicals over anticipation of a swift economic recovery, a portfolio manager at Atlanta, Keith Buchanan said, “The sentiment is risk-on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment.