From Market Insider
- US stocks rose on Wednesday as investors assessed economic-reopening efforts in the face of climbing coronavirus cases, which hit a single-day record of 60,000 on Tuesday.
- The surge in new cases could further threaten the US economic recovery.
- The so-called opening trade stumbled, but technology shares rose, leading the broader market higher. Apple hit an all-time high.
US stocks rose on Wednesday as investors weighed rising coronavirus cases against efforts to reopen the economy.
On Tuesday, the US reported another single-day record of 60,000 new coronavirus cases, bringing the total confirmed cases in the country to 3 million, according to data from Johns Hopkins University.
Several states have had to pull back or postpone reopening efforts to control surging COVID-19 cases, threatening the speed of the economic recovery in the US.
The so-called reopening trade stumbled, with shares of cruise lines and airlines such as American and Delta falling. United Airlines slipped after it warned 36,000 employees about potential job cuts.
The losses were more than offset by gains in major technology companies, which have led the broader market as investors bet on their ability to perform amid a recession. Shares of Amazon, Microsoft, and Alphabet all rose. Apple hit a record high.
Here’s where US indexes stood at the 4 p.m. ET market close on Wednesday:
- S&P 500: 3,169.94, up 0.8%
- Dow Jones industrial average: 26,067.28, up 0.7% (177 points)
- Nasdaq composite: 10,492.50, up 1.4%
“The market is continuing to find a tangible direction amid a fair amount of volatility,” said Mike Loewengart, managing director of investment strategy at E*Trade.”While the market largely reflects investor optimism, the COVID situation is seemingly evolving by the hour and we’ve also reintroduced trade tensions to the mix so there’s a bunch to digest.”
Tensions between the US and China have grown after Beijing last week passed a new security law in Hong Kong, restricting free speech. China’s stock market gained again after an editorial in a state-run newspaper earlier this week encouraged buying to support a healthy bull market following the coronavirus pandemic.
Gold topped $1,800 an ounce for the first time since 2011 as investors piled into the safe-haven asset amid mounting fears of a second wave of coronavirus cases.
Twitter surged as much as 12% Wednesday after the company posted a job listing saying it is building a new subscription platform. Nikola jumped 38% at intraday highs after JPMorgan upgraded shares of the company to overweight from neutral.
Shares of AMC Entertainment jumped after the Wall Street Journal reported that the company was nearing a deal to avoid bankruptcy.
Oil prices gained following a key report from the Energy Department that showed that crude stockpiles increased last week. West Texas Intermediate crude rose as much as 1.1%, to $41.08 per barrel. Brent crude, the international benchmark, gained 0.9%, to $43.47 per barrel, at intraday highs.
