Sharechat Logo

Stocks Keep Rising After Dow's Best Day in 87 Years

Thursday 26th March 2020

Text too small?

Dow industrials climb as Boeing, energy sector lead stocks higher

U.S. stocks soared in frenetic trading Wednesday, heading for their first back-to-back gains since February, after lawmakers and the White House reached an agreement on a $2 trillion stimulus package.

The Dow Jones Industrial Average jumped 1,147 points, or 5.5%, to 21852, extending a rally that propelled it to its biggest one-day advance since 1933 just a day earlier. The S&P 500 was up 4.3% and the Nasdaq Composite climbed 2.4%.

Investors have been eager to see the government commit to further aid for the economy as the growing coronavirus pandemic has shut factories, sent students home from universities and upended travel for millions of Americans. The pending legislation is likely to include direct financial payments to many Americans, as well as loans to businesses—reassuring some who have been worried about the economic fallout from the pandemic.

“We’re in a global economic freeze, and we don’t know how long it’ll take to thaw,” said Stephen Dover, head of equities at Franklin Templeton. Mr. Dover added that while it has been comforting to see governments and central banks roll out measures to mitigate the economic fallout from the pandemic, “we still don’t know how long people are going to stay at home, and that’s the big swing factor.”

Uncertainty about the pandemic and its trajectory, combined with a spike in trading volumes, have contributed to big moves both up and down across markets the past few weeks—something analysts and investors say is likely to be common for the foreseeable future. 

Shares of airlines and aerospace companies jumped Wednesday on bets that the industry would be one of the major beneficiaries of the stimulus package.

Dow heavyweight Boeing soared 30%, giving a boost to the blue-chip average. United Airlines added 14% and American Airlines rose 13%.

Energy stocks rallied, with the S&P 500 energy sector up 7.5%. Oil producers and exporters have been one of the worst-hit groups in the selloff of the past few weeks, hurt by both worries about falling demand for oil due to the pandemic and a price war among global producers.

Sources: Akane Otani, Caitlin Ostroff and Frances Yoon 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Heartland announces FY20 full year results
Geo Limited releases its FY20 Annual Report
Michael Hill International Limited announces 2020 annual report
Tower supports climate risk reporting
Tourism Holdings Limited Updated FY20 guidance
The Bankers Investment Trust Plc- Issue of Equity
Oio Consents to Acquisition of Metlifecare
Summerset Considers Retail Bond Offer
Z seeks previous corporate employees for remediation payment
SkyCity Announces Full Year Results

IRG See IRG research reports