Stock Market Update Monday, May 18th, 2020
Stocks had their best day in more than a month after Sunday’s Fed comments and COVID-19 vaccine hopes.
The major indices were up big at the open, with traders reacting positive to Fed Chair Jerome Powell’s comments on Sunday.
On 60 Minutes, Powell said that “we don’t really know” how long the recovery will take, but he expects steady growth in the second half of he year. Powell also said that a vaccine is necessary for the economy to get back to full strength but that “the Fed hasn’t run out of ammunition by a long shot.”
There was also news that Moderna (MRNA) has seen success with its coronavirus vaccine, the first tested on humans. The company said that 45 trial participants developed coronavirus antibodies after two doses of the vaccine.
After a higher open stocks never looked back.
The NASDAQ has been the leader of the coronavirus comeback. But today it was the DOW leading the way with a 3.9% gain.
Here’s where the major indices ended the day:
- The S&P finished with a 3.2% gain. Up 90 points, the S&P ended at 2,954.
- The DOW ended 3.9% higher. Adding 912 points the DOW closed at 24,597.
- The NASDAQ was up 2.4%. With a 220 point gain the NASDAQ finished at 9,235.
Crude Oil (CL) finished higher for the 3rd day straight. Up 6.9%, Crude Oil ended at $31.56 a barrel. It was the first close above $30 since April 9th.
Stocks most sensitive to the economy re-opening were up the most.
Disney (DIS) was up 7.2%, MGM (MGM) shot up 10.5% and Carnival (CCL) rallied 15.2%.
We know that jobs have been hit hard by COVID-19. But it might actually be worse than most people think the University of Chicago says that based on their research, 42% of the recent job losses will not return…ouch!
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.