Stock Market Update Tuesday, March 24th, 2020
If you were waiting for a rally, today was the day!
Stocks soared on hopes that Republicans and Democrats are getting close to an agreement on a stimulus deal.
In overnight trading futures went limit up (a 5% move higher). Then at the opening bell stocks rocketed higher again.
The major indices went straight up until lunch.
And around lunchtime, Senate Minority Leader Schumer said that negotiations were on the “two-yard line”, a sign that lawmakers were close to an agreement. The package is expected to worth around $2 trillion and as the day went on there was speculation that a deal in principal could be agreed upon tonight.
There was a pullback early afternoon. But stocks rallied again and finished at highs of the day.
The DOW was up 11%, its biggest 1-day gain since 1933!
Here’s where the major indices ended the day:
- The S&P finished with a 9.4% gain. Up 210 points, the S&P ended at 2,447.
- The DOW ended higher by 11.4%. Adding 2,113 points the DOW closed at 20,705.
- The NASDAQ was up 8.3%. With a 565 point gain, the NASDAQ finished at 7,418.
Crude Oil (CL) was higher for the 2nd day in a row. With a a 3.0% gain, Crude Oil finished at $24.06 a barrel.
Chevron (CVX) led the DOW today with an impressive 22.7% gain. The move came after the company said it would not cut its dividend.
Wynn Resorts (WYNN) and MGM Resorts (MGM) were on the move as well, up 15.6% and 33.1% respectively.
President Trump said that he wants to re-open the economy and “would love to have it open by Easter.”
But health officials and some analysts are skeptical.
There are now 50,000 COVID-19 cases in the U.S. and 600 deaths. In New York City alone there are 15,000 coronavirus cases and 131 deaths.
But there’s evidence that the quarantine is helping to “flatten the curve.”
In the San Francisco Bay Area, the first community to issue a “shelter in place” for its residents, COVID-19 cases increased from 310 cases to 786 cases during the 6 days after a shelter in place was ordered. In comparison, cases in New York went from 950 cases to 15,168 cases in the same period.
And here’s a WTF if we ever saw one…
Gold (GC) rallied 5.5% with the market!
Yes the Dollar Index (DX) was down 1.2% (gold normally goes up when the U.S. dollar goes down). But gold experiencing a monster rally while stocks had the DOW experienced its biggest 1-day % gain since 1933 was a bit of a shock.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.