Stock Market Update Wednesday, May 20th, 2020
Stocks bounced back today, and the S&P finished at its best levels since early March.
The major indices were up nicely at the open and continued to rally all morning.
After making session highs around 11:30am ET, there was a bit of a pullback. The drop came after the Senate passed a bill that will increase oversight of Chinese companies and ban some Chinese companies from listing on U.S. exchanges.
Then at 2pm ET we had April’s Fed Minutes to digest.
The minutes showed that the Fed believes there is an “extraordinary amount of uncertainty and considerable risks” because of COVID-19.
Fed members are also worried about a second wave of infections and the impact on lower income households.
But the Fed has taken measures like cutting rates and offering lending and liquidity programs (and may take additional measures) which have been “crucial for limiting the severity” of the impact on the economy.
After the minutes trading was choppy. Then stocks drifted higher into the close.
The NASDAQ led the rally again today, and is now just 5% away from its record high.
Here’s where the major indices ended the day:
- The S&P finished with a 1.7% gain. Up 49 points, the S&P ended at 2,972.
- The DOW ended 1.5% higher. Adding 369 points the DOW closed at 24,576.
- The NASDAQ was up 2.1%. With a 191 point gain the NASDAQ finished at 9,376.
Crude Oil (CL) finished higher for the 5th day in a row. Up 4.9%, Crude Oil ended at $33.51.
The major indices might not be back at record highs, but some stocks are.
Facebook (FB) made new highs after a 6.0% gain today. And Amazon (AMZN) entered record territory with a 2.0% gain.
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.