After showing a strong move to the upside early in the session, stocks remain firmly positive in mid-day trading on Wednesday. With the jump on the day, the major averages are partly offsetting the steep drop seen over the two previous sessions.
In recent trading, the major averages have reached new highs for the session. The Dow is up 457.14 points or 2 percent at 23,476.02, the Nasdaq is up 199.66 points or 2.4 percent at 8,462.89 and the S&P 500 is up 59.73 points or 2.2 percent at 2,796.29.
The strength on Wall Street partly reflects a positive reaction to a substantial rebound in oil prices following the historic drop seen earlier this week.
The front month crude oil contract turned negative for the first time in history on Monday, and later month futures showed another substantial move to the downside on Tuesday.
However, crude oil for June delivery has moved sharply higher over the course of this morning after falling near $10 a barrel overnight. Crude for June delivery is currently jumping $2.71 to $14.28 a barrel.
Buying interest has also been generate in reaction to news that the Senate has passed a new bill to provide funding for hospitals and small businesses and expand coronavirus testing.
The $484 billion aid package was approved unanimously by the Senate and now heads to the House, which could approve the bill as soon as Thursday.
President Donald Trump has said he will sign the bill and then plans to begin discussions on additional legislation to provide fiscal relief for states and local governments, increase infrastructure spending, provide tax incentives for restaurants and entertainment businesses and cut payroll taxes.
Gold stocks continue to turn in some of the market’s best performances in mid-day trading, with the NYSE Arca Gold Bugs Index spiking by 6.1 percent to its best intraday level in well over three years.
The rally by gold stocks comes amid a substantial increase by the price of the precious metal, as gold for June delivery is soaring $43.90 to $1,731.80 an ounce.
Considerable strength also remains visible among semiconductor stocks, as reflected by the 4.2 percent jump by the Philadelphia Semiconductor Index.
The jump in oil prices is also contributing to significant strength among energy stocks, with the Philadelphia Oil Service Index and the NYSE Arca Oil Index both surging up by 4.1 percent.
Networking, utilities software and steel stocks have also shown strong moves to the upside amid broad based buying interest on Wall Street.
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan’s Nikkei 225 Index slid by 0.7 percent, while China’s Shanghai Composite Index climbed by 0.6 percent.
Meanwhile, the major European markets all showed strong moves to the upside on the day. While the U.K.’s FTSE 100 Index spiked by 2.3 percent, the German DAX Index surged up by 1.6 percent and the French CAC 40 Index jumped by 1.3 percent.
In the bond market, treasuries are giving back ground after moving notably higher over the two previous sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.3 basis points at 0.624 percent.
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