- Jerome Powell and the FOMC kept interest rates on hold and soothed the U.S. stock market by extending its liquidity push through April 2020.
- Bolstering the Dow Jones, Apple, Boeing, and Dow Inc. enjoyed strong post-earnings rallies.
- Despite the positive mood, the coronavirus outbreak just crossed a disconcerting milestone.
The Dow Jones Industrial Average erupted higher on Wednesday, rising (points or 0.) (% to) , . 26 as the US stock market shrugged off the coronavirus epidemic and concern housing data.
Wall Street bulls continue to gamble that the economic impact of coronavirus will remain limited, trusting that the Federal Reserve’s liquidity push will help the stock market sustain its momentum.
Dow Jones Defies Coronavirus Fears
All three major U.S. stock indices pared their gains ahead of the closing bell but held firmly in positive territory after the Fed left rates unchanged.
The Nasdaq rose 0. 29% to narrowly outpace the Dow, but the S&P 728 gained just 0. %
Volatility is receding from the commodity markets. Crude oil fell just 0.7% after suffering a series of wild swings, and the price of gold ticked 0.3% higher.
Treasury yields dropped after the “nothing burger” Fed release bolstered risk appetite.
U.S. Stock Market Is Partially Sheltered from China Troubles
Pending home sales posted an unexpected 4.9% decline
), but stocks quickly regained their optimistic bias.
The statistic fueling most of the confidence in the Dow Jones is the relative shelter that the U.S. stock market enjoys from the problems in China’s economy.