Markets are continuing their run off the lows, amid anticipation of a stimulus package being passed, as the Dow, S&P 500, and Nasdaq are all green for the second day in a row.
The Dow Jones Industrial Average popped 17% in two days row, a feat that has yet to happen since the beginning of the precipitous fall from all-time highs that began in February, as a coronavirus stimulus deal was passed by Congress. Positive comments from pundits such New York Gov. Andrew Cuomo and a former Federal Reserve chief also helped to boost equities.
The Dow rallied as much as 1,100 points, or 5.2%, on Wednesday, while the S&P 500 was up by about 4.1%. The Nasdaq Composite, which had suffered the least in the downdraft recently, climbed 2.5%.
Stock Index ETFs are also continuing to move higher, with the SPDR S&P 500 ETF Trust (SPY) up 4.49%. The SPDR Dow Jones Industrial Average ETF (DIA) has climbed a solid 5.23%, and the Invesco QQQ Trust (QQQ) is up 1.75%.
Investors were relieved to have some assistance amid the panic of the coronavirus that has been wreaking havoc on the economy and credit markets.
Markets first stumbled off of a close to 40% drop on Monday, closing just off the lows before commencing a massive run Tuesday, where the Dow soared more than 2,100 points on Tuesday, or over 11%, notching its biggest one-day percentage gain since 1933 and its best point increase ever. The S&P 500 rallied 9.4% for its best day since October 2008 on Tuesday as well.
“From a market perspective … it feels like we’re coming to the end of it,” said Michael Novogratz, CEO of Galaxy Digital, on CNBC’s “Squawk Box.” Novogratz started buying into this market on Monday, he said. “It doesn’t necessarily mean the market’s going to go up, but a lot of that crazy volatility is kind of coming out.”
Still, some investors are skeptical and gun-shy to get back into stocks, believing that the number of global coronavirus cases needs to improve before the market can form a more meaningful bottom.
“People have to contend with the idea that the longer that lasts, the more people potentially are losing their job,” said Yousef Abbasi, director of U.S. institutional equities at INTL FCStone. “So to see a sustainable rally at this point is going to be very difficult.”
For more market trends, visit ETF Trends.