U.S stocks futures recovered from an earlier dip in overnight trading points to gain continuous gains when the trading bell rung on Wednesday. A general sense of optimism seems to be ringing around traders even as U.S-China relations tensions extend. Recent hopes for a return to normalcy returned as the Dow Jones Industrial Average reached market levels for the first time since March as U.S-China tensions capped gains.
“Some better than expected housing numbers. As reopening gets underway, virtually all states now we are starting to see activity bounce off of very low levels,” Michael Darda, MKM partner chief market strategist and chief economist was quoted saying.
Dow Jones rose 183 points and opened to an increased gains of 242 points. The S&P 500 and Nasdaq futures pointed to modest gains during the opening on Wednesday. The Dow Jones Industrial Average climbed more than 500 points, or 2.2% while the 30-stock average traded briefly above 25,000, a level which was not seen since early March.
Reports suggest that the ongoing feud between China and the United States is not going away any time soon as President Trump was quoted saying that he will be introducing new sanctions by the end of the week. The S&P climbed 1.2% and briefly reached the 3,000 level for the first time since March 5. Many Wall Street analysts quoted that this level will be a long time trend. The Nasdaq Composite rose 0.2%.
“For the first time in this crisis, we are being bombarded by good news,” Jim Paulsen, chief investment strategist at the Leuthold Group told CNBC. “The S&P 500 finally breaks above its 200-day moving average (3000)”and“more new vaccine drugs look promising.”