Stock Market News For Mar 26, 2020
Zacks Investment Research | Mar 25, 2020 09:31PM ET
The Dow and the S&P 500 closed in the positive territory on Wednesday as investors remained hopeful that the U.S. Senate will pass a $2 trillion economic rescue package to boost beaten-down stocks. However, the Nasdaq failed to end in the green as the rescue package appeared to hit a stumbling block in the final minutes of trade.
The Dow Jones Industrial Average (DJI) rose 495.64 points or 2.4%, to close at 21,200.55 and the S&P 500 rose 28.23 points or 1.2% to close at of 2,475.56. While, the Nasdaq Composite Index closed at 7,384.30, losing 33.56 points, or 0.5%. The fear-gauge CBOE Volatility Index (VIX) increased 3.7%, to close at 63.95. Advancing issues outnumbered declining ones for a 6-to-1 ratio on the NYSE and a 2-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
On Wednesday, the S&P 500 registered its first consecutive gains since Feb12, while the Dow marked its first successive gains since Feb 6. The Dow was boosted by The Boeing Company (NYSE:BA) gain of 24.3% and NIKE, Inc. (NYSE:NKE) gain of 9.2%. However, the blue-chip index lost about 500 points in the final 30 minutes of trading on fears the agreement was hitting a snag.
Overall, the S&P index recorded no new 52-week highs and four new lows. Meanwhile, Nasdaq recorded three new highs and 41 new lows.
Fiscal Stimulus Package Expectation Lifted Stocks
On Wednesday, investors remained hopeful on progress of U.S. fiscal stimulus package that could provide relief to beaten-down businesses. At the day’s session high, the Dow was up more than 6% while the S&P 500 gained as much as 5.1%. The stimulus measure could provide equities tailwind and support businesses and households affected by the coronavirus pandemic.
The bill is expected to provide $1,200 direct payments to U.S. citizens and offer nearly $360 billion in loans to small businesses. At the same time nearly $500 billion fund will be allotted to distressed firms, along with increase in unemployment insurance benefit and additional resources for health-care providers.
Hopes of the fiscal stimulus packed helped sectors like airlines and cruises, which were among the hardest hit by the coronavirus pandemic, gain traction on Wednesday. Shares of Delta Air Lines, Inc. (NYSE:DAL) rose 15.7%, while Royal Caribbean Cruises Ltd. (NYSE:RCL) and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) rose nearly 24%.
Delta Air Lines carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.