Dow gains 369 points as investors consider economic-reopening prospects
US stocksrose on Wednesday as investors looked to positive signs of economic reopenings from coronavirus shutdowns.
- Retailers continued to release earnings, with Lowe's gaining and Target declining after premarket reports.
- Oil rose ahead of a key report due Wednesday from the US Energy Information Administration.
- Read more on Business Insider.
The gains reversed Tuesday's losses, driven by reports that questioned the progress of a COVID-19 vaccine candidate from Moderna, which snapped a three-day win streak for stocks. All 11 sectors of the S&P 500 gained Wednesday, led by financial, industrial, and energy groups.
Stocks pared gains slightly in the afternoon, falling from session highs, after the Senate passed a bill that could prohibit some Chinese companies from listing on American exchanges.
Here's where US indexes stood at the 4 p.m. ET market close on Wednesday:
- S&P 500: 2,971.61, up 1.7%
- Dow Jones industrial average: 24,575.90, up 1.5% (369 points)
- Nasdaq composite: 9,375.78, up 2.1%
Investors watched a round of retail earnings before the bell on Wednesday that indicated that people had taken to home improvement and shifted to shopping online during sweeping lockdowns.
Tech stocks also gained, leading the market higher. Facebook gained more than 6%, reaching an all-time high during intraday trading. Shortly after market open, Amazon also briefly hit an all-time intraday high, rising as much as 2.1%.
Airlines also gained, with Delta, United, and Southwest all rising more than 4%. In the last hour of trading, Disney surged as much as 6% on reports that theme parks will begin making reopening presentations tomorrow. The parks' plans must be approved by Florida Gov. Ron DeSantis before they are allowed to reopen.
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States continue to slowly reopen their economies for business following sweeping lockdowns that began mid-March to curb the spread of Covid-19. So far, 46 states have eased their lockdown measures and restarted some activities, according to a Wednesday note from Bank of America.
Oil rose as traders saw signs of demand stabilizing following a hit from the coronavirus pandemic. West Texas Intermediate crude gained 3%, to $33.54 per barrel. Brent crude, the international benchmark, gained 5.2%, to $36.46 per barrel, at intraday highs.
Crude prices absorbed a report from the US Energy Information Administration showed that inventories declined for the second week in a row.
The Federal Reserve released minutes from its April 28 and 29 meeting at 2 p.m. ET. The report showed that US central bankers considered the coronavirus pandemic and extreme threat to the economy. They were also concerned about high levels of unemployment and potential bankruptcies.
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