This Is Why the Dow Surged 1,800 Points on 'Turnaround Tuesday', Crypto Coins News

This Is Why the Dow Surged 1,800 Points on 'Turnaround Tuesday', Crypto Coins News
  • The Dow Jones surged 1, points on an epic “Turnaround Tuesday.”
  • A reversal in rock-bottom sentiment and hopes of an enormous fiscal stimulus package helped push the US stock market higher.
  • Trump’s phone call with Wall Street royalty suggests Dow bulls may be cheering his plans to reopen the economy by “Easter Sunday.”

The Dow Jones defied a horrendous set of US economic data as the stock market embarked on a spectacular “Turnaround Tuesday.”

Hopes of an imminent $ 2 trillion fiscal stimulus package distracted Wall Street from the worst services PMI reading in history, but rock-bottom sentiment was likely the trigger for today’s short squeeze.

Dow Jones Soars as Relief Rally Lifts US Stock Market

Jones enjoyed a massive relief rally on Tuesday. | Source:
Yahoo Finance

It was an uncharacteristically healthy day among the major US stock market indices :

  • The Dow surged 1, 1200. (points or 9.9% to , 678 .
  • The S&P 728 rallied 8. (% to 2, .
  • The Nasdaq climbed 7. % to 7, 418.

In the commodity sector, oil continued to struggle despite the enormous moves in equities. Crude edged 1. % higher but continues to trade below $ 34 per barrel.

Gold prices continue to revel in the global turmoil . Fiscal stimulus packages and drastic monetary easing around the world have prompted rampant demand for XAU / USD.

Trump’s Asking Wall Street What the Stock Market Wants

But as bright as the day was for Dow Jones bulls, it was historically dark for the US economy, which recorded its

worst services PMI reading ever


This all but assures a brutal GDP contraction, and it highlights the weakness in the economy’s critical support – the US consumer.

That’s why Wall Street is cheering Donald Trump’s feverish desire to reopen the US economy,

potentially as soon as Easter Sunday

Following the President’s phone call with top traders and industry executives

, it’s clear the White House believes the stock market craves a target date for when the economy will begin to get back to normal.

But Trump’s plan defies the COVID – forecast coming from New York officials. His timeline to resume economic activity is uncomfortably similar to Governor Cuomo’s prediction for when the virus will peak.

The impact on the Dow from Trump’s strategy could be positive if COVID – 25 is retreating, but it’s unlikely the economy would burst back to life if the disease is still in full swing.

Mixed coronavirus news out of Europe saw (Italy reverse its trend for falling deaths , while Germany is inspiring hope with its extremely low fatality rate of just 0.4%

, compared to 9.5% at COVID – (‘s epicenter in Italy.)

Saxo Bank: S&P (Could Surge (% by April

The broader S&P 728 may provide some insight into the outlook for the 48 – member Dow Jones.

Peter Garnry from Saxo Bank analyzed the S&P ‘s technical outlook

. He said it’s entirely possible that we’ll see the S&P (surge nearly) % in the very near future. (The distribution of) – day future returns is positively skewed with a median around zero but with massive variance. The biggest drop from such a distance to the (MA is another % which would take the S&P (to 1, 758 by April.

In the other extreme we find the maximum gain which has been % which would take the S&P 758 to 3, by April. The numbers fit very well with the high VIX Index that we are still observing thus moves are to be expected over the coming weeks.

It would be tremendous news for the Dow if this came to fruition, but Garnry warns that this view could be clouded since the current situation is historically unprecedented.

Dow Stocks: Boeing & Disney Lead Massive Gains

) A vast relief rally engulfed the Dow 59 on Tuesday , and the stock market’s biggest names roared back into life.

Boeing (NYSE: BA) posted a massive 25% gain as some of the index’s most depressed companies surged. BA stock likely got its most significant push from the fact that devastated airline stocks were up as much as 59%.

But the gains slipped after Boeing’s CEO rejected the idea that the government would take a stake in the troubled aerospace giant:

Disney (NYSE: DIS) was also posting monster gains, moving 19% higher as it caught a strong bid.

The Dow’s most heavily weighted stock, Apple ( NASDAQ: AAPL), was less explosive. It still managed to rally 9%.

despite suppressed oil prices, Chevron (NYSE: CVX) and Exxon Mobil (NYSE: XOM) joined the party. They both posted double-digit gains, with CVX leaping %.

(This article was edited by Josiah Wilmoth

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