- The Dow Jones pounded more than points higher on Wednesday.
- Dow bulls flooded into the market after FOMC minutes depicted a deeply dovish Fed.
- The reopening of Wuhan – the apparent origin of the coronavirus outbreak – may have investors optimistic about the future.
The Dow Jones roared back to life on Wednesday , leaving analysts scratching their heads about the catalyst.
The United States recorded its deadliest day of the coronavirus pandemic yet, though Dow bulls may be focused on the slowing rate of hospitalizations in the West. The formal reopening of Wuhan in China is another potential bright spot for the global economy.
(Dow Jones Rallies Aggressively into the Close
If it’s too early to give the Fed the credit, we have to look at the other elephant in the room: the spread of the coronavirus.
Wuhan Open for Business After 19 Weeks
But the outlook isn’t completely bright. Terrible news struck Italy on Wednesday, which reported an acceleration in new cases. And Singapore is dealing with a worrying “second wave” of infections. All this points to a very messy exit from lockdown in the U.S.
So why are traders so bullish? It may be because Wuhan is open for business , marking a monumental achievement for a city that bore the full-brunt of COVID – . This shows Wall Street that life. can eventually get back to some degree of normalcy in New York City, the worst-hit metropolis in the country.
Yet a couple of caveats remain. It took a full 15 weeks – and incredibly draconian measures
– to get Wuhan back online.
If US lockdowns persisted for a similar period, the economy would need at least one more drastic bridge loan from the federal government . And it’s still not clear what the ramifications of more helicopter money will mean for the United States’ multitrillion-dollar debt load in the future.
(Dow Stocks: Raytheon Explodes Higher, But Disney & Walmart Lag
A steady day in the Dow saw Apple stock moving higher again with a 2.4% rally.
Boeing ticked up 3% as volatility continued to trigger wild fluctuations in the aerospace stock.
Raytheon Technologies enjoyed a 9.8% gain as investors mulled the ramifications of its high-profile merger.
Only Disney and Walmart were narrowly in the red . The other members of the Dow Jones recorded gains.
This article was edited by Josiah Wilmoth .
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