Coronavirus US: Dow Jones opens 200 points up as stocks rebound

Marco Green
March 31, 2020

The Dow Jones Industrial Average rose 690.7 points, or 3.19%, to 22,327.48, the S&P 500 gained 85.18 points, or 3.35%, to 2,626.65 and the Nasdaq Composite added 271.77 points, or 3.62%, to 7,774.15.

Monday's gains put the Dow up 20 percent from its lows amid the market sell-offs due to the coronavirus, while the S&P 500 has risen 17 percent from its lows and the Nasdaq recovered 13 percent.

All three major U.S. indexes soared last week after legislators in Washington passed a $2.2 trillion virus rescue package to help individuals, industries and business great and small knocked sideways by coronavirus containment measures.

Along with healthcare, the technology sector also rose more than 4% on the day, as Microsoft shares jumped more than 7%, the biggest boost to the broad S&P 500. The Dow is on track for its worst month since 1987.

Trump on Sunday dropped a hotly criticized plan to get the economy up and running again by mid-April after White House health experts argued strongly to extend the stay-at-home order to curtail the spread of the COVID-19 disease.

"Massive monetary and fiscal spending is giving investors just enough breathing room to figure out the extent of the economic damage done", said Stephen Innes, a markets strategist at AxiCorp. Entire sectors of the global economy have shut down with a swiftness and severity that has drawn comparisons with the opening days of the Great Depression that started in 1929.

USA stocks continued their rally on Wall Street Monday as they largely rebounded from losses experienced due to economic concerns regarding the COVID-19 pandemic.

The S&P healthcare sector jumped by 4.67 percent, in part due to gains in Johnson & Johnson and Abbot Laboratories surged by 8.00 percent on the USA government's plans to help fund the creation of enough manufacturing capacity for its coronavirus vaccine, now under development.

Behravesh believes the market has not yet digested how slow the recovery will be, saying lockdowns may not end until the summer and "we'll be on a lower trajectory for a long time".

Abbott Laboratories sailed more than 10 percent higher after receiving U.S. approval for a diagnostic test that can detect coronavirus in minutes.

Other reports by Click Lancashire

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