Stock Market Update Tuesday, May 26th, 2020
Stocks kicked off the short week of trading with a bang.
Yesterday, U.S. markets were closed in observance of Memorial Day. But futures were open for a short trading session and ended higher.
Then today, index futures rallied overnight and stocks were up nicely at the open.
Here’s what traders were focused on this morning:
- Re-opening the economy – Economic activity picked up over the holiday week, with states beginning to reopen their economies. And even the New York Stock Exchange had traders return to the floor today.
- Positive vaccine news – Novavax (NVAX) announced that they have started human trials and expect initial results in July. The stock finished higher by 4.5%. And Moderna (MRNA) reported positive results with all 45 participants in their study developing coronavirus antibodies. Moderna dropped 16.4% today.
The major indices dropped a little after the open, then spent most of the day chopping around in a range.
Then stocks dropped sharply in the last hour of trading after U.S. – China news. The reports said that the U.S. is considering sanctions on Chinese officials and firms over China’s national security law that threaten’s Hong Kong’s city status.
The S&P spent most of the day above 3,000 and above its 200-day moving average (a level some traders view for identifying long term trends) until the late session drop. But the S&P still finished with its best close since March 5th.
Here’s where the major indices ended the day:
- The S&P finished with a 1.2% gain. Up 36 points, the S&P ended at 2,992.
- The DOW ended higher by 2.2%. Adding 530 points the DOW closed at 24,995.
- The NASDAQ was up 0.2%. With a 16 point gain the NASDAQ finished at 9,340.
Crude Oil (CL) traded back above $34 in yesterday’s short session. But today Crude Oil was down 0.7%, ending the session at $34.17 a barrel.
The optimism over the reopening of the economy helped bank stocks today.
Bank of America (BAC) was up 7.2%, Citigroup (C) traded higher by 9.2%, JP Morgan Chase (JPM) rallied 7.1%, and Wells Fargo (WFC) finished with an 8.7% 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.