US Stocks Struggle Early after Tuesday's Overcooked Rally

Wall St. drives global stocks higher on hopes of $2 trillion stimulus;US Dollar falls

Wall St. drives global stocks higher on hopes of $2 trillion stimulus;US Dollar falls

In metals markets, gold changed hands at US$1,608.78 an ounce, retaining most of Tuesday's gains of nearly 5 per cent, its biggest jump since 2008.

The Dow Jones Industrial Average soared more than 11 per cent on Tuesday in its biggest single-day percentage gain since 1933 and the benchmark S&P 500 jumped 9.4 per cent ― its tenth biggest daily gain on record since a daily data series started in 1927.

Boeing surged 24%, bringing its gain over the past three sessions to nearly 70%, as investors bet on government support for the aerospace industry as well as airlines. American Airlines Group, United Airlines Holding and Delta Air Lines each jumped more than 10%.

All three main US stock indexes jumped more than 5%, bouncing back from a brutal selloff in the previous session on fears of a deep global recession as entire nations shut down to prevent the virus from spreading. Wall Street also teetered though it mostly remained more than 1% higher. "It's the institutional crowd being able to say, "the world isn’t falling apart".

Monday's losses were fueled in large part due to the uncertainty on whether a government stimulus bill would be approved after Democrats protested some of the provisions set forth by Senate Republicans. Bernie Sanders threatened to hold up Congress' $2T economic stimulus package.

For most people, the new coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks.

"We are still in a phase where we need to be cautious", warned Rob Haworth, senior investment strategist for U.S. Bank Wealth Management.

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"The stimulus measures will continue acting as equity tailwinds as they seep into corners of the credit market presently locked", said Adam Crisafulli, founder of Vital Knowledge, in a note.

U.S. Senate reached agreement on an unprecedentedly large relief package that includes an extension of unemployment benefits, small business loans and some 130 billion U.S. dollars for health care infrastructure.

Apple Inc fell late in the session, closing down 0.55% after Nikkei reported the company could delay the launch of an iPhone with 5G wireless technology. The S&P 500 gained 28.23 points, or 1.15 per cent, to 2,475.56 and the Nasdaq Composite dropped 33.56 points, or 0.45 per cent, to 7,384.30.

Royal Caribbean Cruises and Norwegian Cruise Line Holdings each rallied about 23%. Airlines, one of the hardest hit by the pandemic, were at the top of the winners list in Wednesday trading.

Advancing issues outnumbered declining ones on the NYSE by a 4.55-to-1 ratio; on Nasdaq, a 2.02-to-1 ratio favored advancers.

The benchmark S&P 500 is still almost US$8 trillion below its mid-February high, and investors expect more sharp swings.

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