(Reuters) – Wall Street’s key indexes rose Thursday, boosted by gains in healthcare and technology stocks, as investors expect a rapid economic recovery from a recession-driven economy. of coronavirus.
Traders wearing masks, on the first day of human trafficking since the closure of the coronavirus disease (COVID-19) floor on the New York Stock Exchange (NYSE) in New York, US, on May 26, 2020. REUTERS / Brendan McDermid
Boeing Co climbed 3.3%, the largest of the 30 blue-chip components, as the planner says it has continued to manufacture its 737 MAX passenger jets at Washington plant, albeit at a “low rate”.
Healthcare and technology sectors rose 2% and 1%, respectively, leading the higher S&P sector.
The S&P 500 rose about 38% from its hit low in March to restarting business activity after the closing weeks and massive amounts of stimulus measures to support the economy’s encouraging optimism. a recovery.
The benchmark index is about 10% below the February 19 high.
“People have a lot of hope that the economy will come back to life pretty quickly,” JJ Kinahan, chief market strategist at TD Ameritrade in Chicago, said, adding that there was concern about the fact that compliance was reliable .
The ties between Washington and Beijing over the coronavirus outbreak and a new national security law in Hong Kong pose a major threat to the strong recovery of the stock market from last year’s crash.
President Donald Trump pledged action in Hong Kong over the weekend.
“I’d rather the market not go up faster because the sharper moves higher, it’s weaker with a pullback,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
Meanwhile, the number of Americans filing for unemployment benefits held more than 2 million for a 10th straight week, while a separate report showed GDP contracted to one larger-than-expected 5% annualized rate in the first quarter, the deepest decline in output since the 2007-09 Great Recession.
At 11:19 a.m. ET, the Dow Jones Industrial Average rose 109.08 points, or 0.43%, to 25,657.35, the S&P 500 rose 15.10 points, or 0.50%, to 3,051.23. The Nasdaq Composite rose 48.48 points, or 0.52%, to 9,460.84.
Bank stocks caught up after surging about 15% in the past two sessions.
Micron Technology Inc’s chip chipmaker declined 3%, despite rising its earnings forecast for the third quarter.
Twitter fell 2.2% and Facebook slipped 0.4% ahead of an expected order from Trump to review a law that has long protected companies from being responsible for the material posted by their users .
Advancement issues are largely decreasing by a 1.49-to-1 ratio on the NYSE and by a 1.38-to-1 ratio on the Nasdaq.
The S&P index recorded 14 new 52-week highs and no new lows, while the Nasdaq recorded 50 new highs and six new lows.
Reporting by Medha Singh and Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D’Silva