The stock market roared back from an abysmal week last week in response to fears over how the spread of the coronavirus could impact business around the world.
“The Dow Jones Industrial Average closed 1,293.96 points higher, or 5.1%, at 26,703.32,” CNBC reported. “The move on a percentage basis was the Dow’s biggest since March 2009. It was also the largest-ever points gain for the 30-stock average.”
“The S&P 500 climbed 4.6% — its best one-day performance since Dec. 26, 2018 — to close at 3,090.23,” CNBC added. “The Nasdaq Composite also had its best day since 2018, surging 4.5% to 8,952.16.”
Politico reported that the stock market’s strong day happened because “investors are increasingly anticipating that the Federal Reserve and other major central banks around the world will lower interest rates or take other steps to shield the global economy from the effects of the outbreak.”
Sam Stovall, chief investment strategist at CFRA, told Politico, “Investors have convinced themselves that global central banks will likely be even more accomodative in order to short-circuit any psychological damage.” – READ MORE
Listen to the insightful Thomas Paine Podcast Below --