Wall Street wraps up best quarter since 1998 on a high note


Unofficially, the Dow Jones Industrial Average rose 241.16 points, or 0.94 per cent, to 25,836.96, the S&P 500 gained 48.55 points, or 1.59 per cent, to 3,101.79 and the Nasdaq Composite added 190.65 points, or 1.93 per cent, to 10,064.81.

Despite the jump on Wall Street, the Australian sharemarket is set to dip at the open, with futures at 5.54am AEST pointing to a loss of 13 points, or 0.2 per cent, at the open. On Tuesday, the ASX jumped by 1.4 per cent.

“What everybody sees is if we can get something that puts an end to the spread or the spread becomes less, there is literally so much money out there that the Fed has put out there that when we turn, it is going to be a rocket ship the other way,” said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.

Still, comments from Anthony Fauci, the US government’s top infectious diseases expert, who said there was no guarantee the United States will have an effective COVID-19 vaccine and warned the virus spread “could get very bad,” were a reminder that a full economic recovery could be a long road.

Gains were capped on the Dow, pressured by a drop in Boeing, as the airplane maker gave back some of Monday’s 14 per cent surge after Norwegian Air cancelled orders for 97 aircraft and said it would claim compensation.

While coronavirus cases continue to surge in many states, the US economy is showing signs of pickup, with data indicating consumer confidence increased much more than expected in June.

Simmering US-China tensions also remained a possible headwind, with Washington beginning to eliminate Hong Kong’s special status under US law in response to China’s national security law for the territory. China said it would retaliate.

All of the 11 major S&P 500 sectors traded higher, with energy stocks leading the pack.

Micron Technology jumped 3.9 per cent as it forecast higher-than-expected current-quarter revenue on strong demand for its chips that power notebooks and data centres.

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The company’s results also boosted other chipmakers and lifted the Philadelphia semiconductor index.

Uber rose after reports that the ride-hailing services company was in talks to buy food-delivery app Postmates.

Reuters