US Stocks Climb for Second Day 04/07 09:07
Stocks climbed in early trading on Wall Street Tuesday as markets around the
world piled on even more gains following their huge rally a day earlier.
NEW YORK (AP) -- Stocks climbed in early trading on Wall Street Tuesday as
markets around the world piled on even more gains following their huge rally a
The S&P 500 jumped more than 2.5% in the first few minutes of trading and
added on to Monday's 7% surge, following encouraging signs that the coronavirus
pandemic may be close to leveling off in some of the hardest hit areas of the
The stock market is looking ahead to when economies will reopen from their
medically induced coma, after authorities shut businesses down worldwide in
hopes of slowing the spread of the virus. In the meantime, governments around
the world are approving or discussing trillions of dollars more of aid for the
Many professional investors say they're wary of the recent upsurge and
expect more volatility ahead. But if Tuesday's rally holds, it would be one of
the few times the market has mustered a back-to-back gain since the coronavirus
outbreak caused it to start selling off in mid-February.
The S&P 500 jumped as much as 3.5% immediately after trading opened but
pared its gains within 15 minutes. It was up 2.7%, as of 9:45 a.m. Eastern
time. The Dow Jones Industrial Average rose 689 points, or 3%, to 23,369, and
the Nasdaq was up 2.2%.
In China, the first country to lock down wide swaths of its economy to slow
the spread of the virus, authorities reported no new deaths over the past 24
hours. Many experts, though, are skeptical of China's virus figures.
Authorities in Spain, Italy and New York have also pointed to signals that
the number of daily infections and deaths may be close to peaking or plateauing.
Experts say more deaths are on the way due to COVID-19, which has already
claimed at least 76,000 lives around the world. The U.S. leads the world in
confirmed cases with more than 368,000, according to a tally by Johns Hopkins
More economic misery is also on the horizon. Economists expect a report on
Thursday to show that 5 million Americans applied for unemployment benefits
last week as layoffs sweep the country. That would bring the total to nearly 15
million over the past three weeks. Analysts also expect big companies in
upcoming weeks to report their worst quarter of profit declines in more than a
But investors have already been preparing for a sharp, sudden recession.
That's why they've sent the S&P 500 down 20% since its mid-February peak.
They've been anxiously waiting for when the number of new infections hits
its peak, which would give a better idea of how long the upcoming recession
will last and how painful it will be. Until then, markets have been flying
Massive aid from the Federal Reserve has helped smooth out snarled trading
that had beset lending markets earlier in the sell-off.
Japan's government on Tuesday formally announced a 108 trillion yen ($1
trillion) package for the world's third-largest economy. In the U.S., the
world's largest economy, House Speaker Nancy Pelosi is telling her colleagues
that another $1 trillion is needed for the next coronavirus rescue package.
Last month, Congress approved a $2.2 trillion package.
In Europe, Germany's DAX jumped 4.1%, and France's CAC 40 rose 3.2%. The
FTSE 100 in London added 3.5%.
In Asia, Japan's Nikkei 225 rose 2%, South Korea's Kospi gained 1.8% and the
Hang Seng in Hong Kong was up 2.1%.