The stock market finished with lofty gains following a broad rally on Wall Street, as bulls quickly retook control of the stock market following yesterday’s selloff. The Dow was up 290, or 1.1%, to 27,977, the Nasdaq gained 229, or 2.1%, to 11,012, while the S&P 500 rose by 47, or 1.4%, to 3,380. Advancing issues outnumbered decliners by a more than 3-to-2 ratio on the NYSE, where volume was light.
Traders said that thanks to today’s broad rally, the S&P 500 is now less than 1% from its record high, despite the weakness among financial issues. As one trader explained, “While the financial sector pulled back following yesterday’s surge, the S&P 500, which is considered a financial-heavy index closed at its highest level since mid-February, which proves that the rally is becoming more and more broad-based.”
While the most virus-sensitive industries clearly lagged the broader market today, since the global COVID picture is still grim, domestic cyclical issues remained remarkably stable. The number of new cases continues to be low in the U.S., and the improving outlook, together with the positive economic surprises, remains supportive of further gains in the coming weeks. This is the case even though stimulus negotiations still have not yielded a deal, and according to the latest reports, the two sides are still far from reaching common ground.
Shares of Tesla (TSLA, +13.1%) surged higher today in the wake of the carmaker’s announcement regarding a 5-for-1 stock split that will make it easier for retail investors to hold positions in the company. Apple (AAPL, +3.3%) announced a 4-for-1 stock split just a couple of weeks ago, which, together with the its blowout quarterly numbers, propelled the stock to a new all-time high. Tesla is now the most valuable carmaker globally, and the stock is set to be included in the S&P 500 soon, which could further boost its popularity among individual investors.
On a Tennis note, you still have one more day to get your answers in for our contest.
As always, have a great evening and stay tuned!!!