The reopening economy fueled hopes of the economy rebounding. Despite the simmering US-China tensions and the continuing cases of Covid-19, the markets displayed signs of investor optimism. A big contributor to this optimism was the jobs report that actually revealed a drop in unemployment in May.
Monday, June 1, 2020
The hopes of an economic rebound easily overshadowed the growing tensions between the US and China. As a result, the benchmarks all ended the day on a high. Tech giants such as Amazon ($AMZN) and Apple ($AAPL) rose 1.2% each. Facebook ($FB) rose 3%. These were the major contributors to the lift for the Nasdaq and the S&P 500. 10 of the 11 major sectors in the S&P 500 closed on a high. Real estate led the way. The Dow Jones rose 0.4%, 91.91 points, and closed at 25,475.02. The S&P 500 closed at 3,055.73 after a rise of 0.4% or 11.42 points. The Nasdaq Composite Index added 62.18 points and closed at 9,552.05. The CBOE Volatility Index (VIX) rose 2.6% and closed at 28.23. Crude oil closed at $36.74 per barrel.
Tuesday, June 2, 2020
All the major S&P 500 sectors ended on a positive note. With the gains on Tuesday, the S&P 500 was over 40% up from its low in late March. Other contributors to the rise of the index were industrials and financials. Nasdaq set 70 highs though it also set 4 new lows. Dow Jones gained 1.1%, 267.63 points, and closed at 25,742.65. The S&P 500 closed at 3,080.82 after rising 25.09 points. Nasdaq gained 56.33 points to close at 9,608.38. The CBOE Volatility Index (VIX) dropped 4.9% and closed at 26.84. Crude oil price closed at $37.72.
Wednesday, June 3, 2020
The S&P 500 attained its best trading performance in 50 days. The Dow Jones Industrial Average (DJIA) rose 2.1% or 527.74 points. It closed at 26,269.89 while the S&P 500 soared 1.4% or 42.05 points and closed at 3,112.87. The Nasdaq Composite Index ended the day at 9,682.91 and added 74.54 points. The CBOE Volatility Index (VIX) slipped 4.4% and closed at 25.66. Industrials and financials led the advances in the S&P 500. Tech stocks were steady. WTR crude was priced at $36.84 per barrel, rising 0.1%, while gold slipped 1.7% to end at $1,698.53 per ounce.
Thursday, June 4, 2020
The airlines led a broad rally that spread optimism into the entire stock market. American Airlines ($AAL) led, the way with a massive 41.3% gain. It was the highest close since March 10. This was the stock’s greatest single-day percentage gain ever, a historic day indeed. The airline announced that it would raise its capacity. This raised hopes that the worst of the Covid-19 crisis has passed. The S&P 500 closed at 3,112.35. Nasdaq ended the day at 9,615.81 while Dow Jones closed at 26,281.82.
Friday, June 5, 2020
US stock indexes had a significant surge on Friday. The morning already saw sharp gains as a result of a report that revealed a rise in jobs in May. The unemployment rate also actually fell instead of rising as per expectations. 2.5 million new jobs were generated in May; with the unemployment rate falling from April’s rate of 14.7% to 13.3%. This surprised many economists, who hadn't predicted this kind of job gain so quickly. Market strategist Naeem Aslam is among many who believe the worst has past and the economy is on the path to recovery. Dow Jones climbed 3.4% or 900 points higher to 27,178 before closing at 27,110.98. This was the fourth consecutive day of gain for the Dow, The S&P 500 index ended the day at 3,193.33, following a 2.7% climb. The Nasdaq Composite climbed to 9,814.08.
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