Stock Market Update Wednesday, May 27th, 2020
Stocks went on a roller coaster ride today.
U.S. – China tensions heated up today after Secretary of State Mike Pompeo said that Hong Kong is no longer autonomous from China. The decision will most likely led to sanctions against Chinese officials and firms.
The major indices were up nicely at the open. But then stocks tanked.
And at one point, the NASDAQ was down 2.1%.
But a little before 11:00am ET, stocks turned around and started to make a comeback.
And a rally after the Fed’s Beige Book release helped push the indices back into positive territory.
The Fed’s Beige Book didn’t really reveal anything new. Other than the next problem for the U.S. economy – workers that don’t want their jobs back!
The Fed noted that workers are hesitant to get back to work for a variety of reasons, especially because of “health concerns, limited access to childcare, and generous unemployment insurance benefits.”
Another surge at the end of the day left the major indices at session highs.
The S&P saw its best close since March 4th and closed back above its 200-day moving average.
The NASDAQ lagged behind the major indices and saw the biggest dip before finishing the day with an 0.8% gain.
Here’s where the major indices ended the day:
- The S&P finished with a 1.5% gain. Up 55 points, the S&P ended at 3,036.
- The DOW ended higher by 2.2%. Adding 553 points the DOW closed at 25,548.
- The NASDAQ was up 0.8%. With a 72 point gain the NASDAQ finished at 9,412.
Crude Oil (CL) saw its lowest close in over a week. Crude Oil was down 4.5%, ending the session at $32.81 a barrel.
Banks were big winners once again…
Bank of America (BAC) was up 7.0%, Citigroup (C) traded higher by 8.5%, JP Morgan Chase (JPM) rallied 5.8%, and Wells Fargo (WFC) finished with a 6.4 gain.
Twitter (TWTR) made headlines yesterday after issuing fact-checking labels on two of President Trump’s tweets. The President threatened the company with “big action.” Twitter ended the day with a 2.8% loss.
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.