The stock market soared today in a volatile session on Wall Street, as each benchmark hit new all-time and recovery highs. The Dow was up 455, or 1.6%, to 29,101, the Nasdaq gained 117, or 1.0%, to 12,056, while the S&P 500 rose by 54, or 1.5%, to 3,581. Advancing issues outnumbered decliners by a more than 2-to-1 ratio on the NYSE, where volume was still light.
Traders said that despite the pullback in some of the leaders of the rally, most of the key sectors rose today, with the global risk rally lifting domestic stocks. As one trader explained, “European stocks rose by the most in almost a month today on hopes of further monetary stimulus, and even though the ‘momentum darlings’ of the tech sector suffered a hit, U.S. equities confirmed their leadership yet again.”
Although stocks finished the day on a clearly positive note, it was not all rosy, under the surface, for bulls. The defensive sectors, such as healthcare, utilities, consumer staples were the strongest today, as long-dated Treasury yields plunged lower. The Volatility Index (VIX) remained above 25 despite the broad rally, small-caps once again lagged the broader market, and the most COVID-sensitive issues still failed to gain significant ground. That said, the large-cap benchmarks closed the day near their intraday highs, and despite the rotation toward safe-haven stocks, the buying pressure remains apparent on Wall Street.
The job market bonanza will continue tomorrow morning, and while a lot of investors might take a step back ahead of Friday’s government jobs report, consumer-related issues could still see increased activity. New jobless claims are expected to remain below 1 million, and bulls hope that the number of continuing claims will finally fall below 14 million. The Challenger job cuts estimate will also be out before the bell, while the ISM non-manufacturing PMI will be in focus during the morning session following Monday’s very strong manufacturing PMI.
“The way I see it, if you want the rainbow, you gotta put up with the rain.”
As always, have a great evening and stay tuned!!!