On Tuesday, the US Stock surges sharply as investors bet the U.S. economy could start to re-open again while oil prices rose for a fifth straight day.
Today, Dow Jones Industrial Average traded 369 points higher, and S&P 500 gained 1.8% while the Nasdaq Composite gained 2.1%.
Pfizer (PFE) led the Dow higher with a 3 per-cent gain. Technology, Health care, and energy were the best-performing sectors in the S&P 500 as they each rose more than 2%.
There is the fear of the second wave of coronavirus cases, among the investors, against efforts to re-open businesses and loosen restrictions. On Monday, California Gov. Gavin Newsom said that some of the state’s retailers will be allowed to offer curbside pickup starting Friday.
The New York Gov. Andrew Cuomo said that the daily number of hospitalizations and new deaths are lessening, suggesting the state is on the other side of the mountain. He added that the officials are not seeing as steep of a decline as they had hoped.
Pfizer (PFE) shares surged after the pharmaceutical giant said it started coronavirus vaccine trials in humans. That led to a 2.7% rally in the S&P 500 health-care sector.
Oil prices rallying 20% from the hope that the economic downturn has bottomed. It was the fifth consecutive day of gains for crude, a market that has been in turmoil with prices turning negative at one point in last month. The price of crude is up 29% so far in May.
Tom Lee, founder and head of research at Fundstrat Global Advisors, said,
“The market was overwhelmed with sellers, causing the fastest crash ever. So we think risk/reward still favours buyers,” Lee added.