Technology Dow jumps more than 300 points as Wall Street heads for a massive week of gains
Dow jumps at open after Wall Street’s biggest rout since 2008
Stocks rallied on Tuesday as Wall Street clawed back some of the massive losses suffered in the previous session. Bets of government intervention to stem the economic downturn from the coronavirus lifted equities.The Dow Jones Industrial Average traded 844 points higher, or 3.5%. The S&P 500 climbed 3.2% along along with the Nasdaq Composite. Exxon Mobil and Chevron led the way higher for the Dow, climbing 8.9% and 6.4%, respectively. Energy was the best-performing sector in the S&P 500, gaining about 6%. Marathon Oil was the biggest advancer in the broad index, trading 24% higher.
Stocks jumped on Thursday after the Federal Reserve gave more details on how it will support the economy amid the coronavirus pandemic.
“This Fed is the most aggressive Fed. They do not want to be known as the reason why we went into a depression,” CNBC’s Jim Cramer said on “Squawk Box” on Thursday. “I’m very impressed. The Fed is on its game and this is what is needed because we got to fight off a depression, we got to get America open for business.”
Thursday’s announcement was enough to outweigh another massive jump in weekly jobless claims.
More than 6 million Americans filed for unemployment benefits last week. Economists expected an increase of 5 million. The latest data built on the record-shattering prior two readings of 6.6 million and 3.3 million.
Dow jumps 1,300 points in biggest 3-day surge since 1931
Stocks surged for a third straight day Thursday as traders shrugged off the release of record-breaking initial jobless claims and the Senate passed a massive economic aid bill amid the coronavirus outbreak. The Dow was up more than 1,300 points, or 6.3%. The S&P 500 gained 6.2%, while the Nasdaq advanced 5.6%. Those gains put the Dow and S&P 500 on track for a three-day winning streak. They also put the Dow up about 20% over the past three days. Boeing, American Express and Nike drove the Dow’s gains, with each stock rising more than 8%.
The latest unemployment data and the Fed’s announcement came after a surge in the stock market that took place on Wednesday. The rally was fueled in part by Sen. Bernie Sanders dropping out of the presidential race, as well as hopes that the coronavirus outbreak may soon turn a corner.
Both the Dow and S&P 500 gained more than 3% on Wednesday. The Nasdaq jumped 2.6%. Wednesday’s rally put the S&P 500 and Dow up more than 10% each for the week while the Nasdaq was up 9.7%.
But some believe that stocks are now getting ahead of themselves and investors should exercise caution.
“I think this is kind of buy the rumor and potentially we sell the news when reality sets in of what we are going to see what’s on the other side,” billionaire investor Mark Cuban said Wednesday on CNBC’s “Closing Bell.”
“I think people are naturally optimistic right now in terms of the market. I just don’t think they’re really factoring in what we’re going to see on the other side,” he added.
After Wednesday’s rally, the Dow is up 29% from its low and the Nasdaq Composite is down less than 10% this year.
“The stock market is at a very uncertain point now. The impact of the coronavirus on future earnings is yet to be determined. We aren’t out of the woods,” said Nancy Davis, chief investment officer at Quadratic Capital.
Dow futures fall 100 points as Wall Street takes a breather after this week’s monster rally .
Futures contracts tied to the major U.S. stock indexes fell on Friday as investors took a breather from Wall Street’s robust gains so far this week. Dow Jones Industrial Average futures traded 127 points lower, or 0.5%. S&P 500 and Nasdaq 100 futures dropped 0.5% and 0.4%, respectively. MGM Resorts, Ross Stores and Under Armour — all stocks that benefit from the economy reopening — in the premarket Thursday. Best Buy also dropped 2% despite better-than-expected earnings.Traders awaited the release of weekly jobless claims at 8:30 a.m.