S&P 500 set to recover $1 trillion in value as virus deaths slow
April 06, 2020 @ 21:30 +03:00
The S&P 500 was on track to recover about $1 trillion in market value in a furious rally on Monday after a drop in the daily death toll in New York, the country’s biggest coronavirus hot spot, raised hopes that the pandemic could level off soon.
All three main stock indexes jumped more than 5%, with the blue-chip Dow Industrials adding 1,200 points. Defensive utilities sector led with big gains, while consumer staples and real estate – also considered safe bets during times of volatility – rose between 3% and 8%.
The S&P 500 banking index jumped 7.2% and was set for its best day in more than a week. Bank of America, Citigroup, Wells Fargo and JPMorgan advanced between 5.8% and 8.8%, tracking Treasury yields.
Still, U.S. officials have girded the country for a “peak death week” from the pandemic, with the death toll topping 10,000. Wall Street’s fear gauge fell to its lowest in two weeks, but analysts cautioned against calling a bottom. During the financial crisis of 2007-08, the S&P 500 took months to establish a bottom even after the volatility index plummeted.
Despite Monday’s bounce, the S&P 500 remains nearly 20% – or $6 trillion in market value – short of its all-time high in mid-February. At 1:16 p.m. EDT, the Dow Jones Industrial Average was up 1,196.52 points, or 5.68%, at 22,249.05, the S&P 500 was up 139.72 points, or 5.61%, at 2,628.37. The Nasdaq Composite was up 410.13 points, or 5.56%, at 7,783.22.
S&P 500 set to recover $1 trillion in value as virus deaths slow, CNBC, Apr 6