Wall Street advances on signs of economic rebound


The Nasdaq, the S&P 500 and the Dow have been approaching their all-time closing highs in recent weeks and are now about 3 per cent, 9 per cent and 13 per cent, respectively, below record closing levels.

Across the US, violent protests over the death of a black man at the hands of law enforcement officers continued unabated, even as President Donald Trump vowed to unleash the military on the demonstrators.

“Most of the focus is on the social unrest,” Ghriskey added. “We all hope calmer heads will prevail and we will address the issues at the root of it all. But this shouldn’t have any impact on the markets.”

But the green shoots of economic rebound driven in no small part by massive stimulus packages from Capitol Hill and the US Federal Reserve has helped fuel investor optimism.

Market participants now await Friday’s crucial jobs report from the US Labor Department for a clearer picture of the extent of economic damage wrought by mandated lockdowns. The report is expected to show the unemployment rate surging to a historic 19.7 per cent.

The Dow Jones Industrial Average rose 157.21 points, or 0.62 per cent, to 25,632.23, the S&P 500 gained 11.65 points, or 0.38 per cent, to 3,067.38 and the Nasdaq Composite added 8.39 points, or 0.09 per cent, to 9,560.44.

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Of the 11 major sectors in the S&P 500, all but consumer staples and communications services were in the black.

The ARCA Airline index, whose constituents have been hit particularly hard by COVID-19-related restrictions, was up 3.3 per cent boosted by a slow but steady increase in commercial air traffic.

Southwest Airlines Co rose 2.6 per cent after extending buyout and paid leaves to employees in what its chief executive called an effort to “ensure survival.”

Shares of Slack Technologies Inc advanced 2.3 per cent after Cowen initiated coverage of the workspace communication platform with an “outperform” rating.

A report that Western Union has made an offer to buy smaller rival MoneyGram International sent the money transfer companies shares up by 11 per cent and 30.1 per cent, respectively.

Advancing issues outnumbered declining ones on the NYSE by a 2.60-to-1 ratio; on Nasdaq, a 1.52-to-1 ratio favoured advancers.

The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 70 new highs and four new lows.

Reuters

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