Stocks - S&P Soars on Bets of Central Banks Stimulus, Slowing China Infections
Investing.com
Published Mar 02, 2020 12:27PM ET
By Yasin Ebrahim
By Yasin Ebrahim
Investing.com – The S&P extended its gains Monday as tech stocks, led by Apple (NASDAQ:AAPL), staged comeback amid signs of a slowdown in infections in China and growing investor bets on global central banks adopting aggressive stimulus measures to cushion the impact on from the coronavirus on economic growth.
The S&P 500 rose 2.44%, the Nasdaq Composite surged 2.71% and Dow Jones Industrial Average rose 676 points, or 2.66%.
Following Federal Reserve Chairman Jerome Powell's pledge on Friday to support the U.S. economy, Bank of Japan Governor Haruhiko Kuroda over the weekend said the central bank would take steps to stabilize financial markets, stoking investor hopes the global central bank stimulus measures would ease the expected to hit growth.
The Bank of England said its was also ready to take action to calm markets.
A 50-basis-point Fed rate cut fully priced in for March, according to Investing.com's Fed Rate Monitor Tool.
Signs the coronavirus spread is slowing in China also helped sentiment.
WHO Director-General Tedros Adhanom Ghebreyesus said China reported 206 new cases of Covid-19, on Sunday, the lowest number of new cases since Jan. 22.
The rebound in the broader sector was underpinned by a rally in tech stocks, with Apple (NASDAQ:AAPL) leading the charge thanks to an upgrade from Wall Street.
Oppenheimer upgraded its rating on Apple (NASDAQ:AAPL) to outperform from perform on expectations that demand for Apple would continue despite uncertain times. Apple) jumped 6%.
Chip stocks also mounted a rebound following a selloff last week as investors piled into beaten-down names like Micron Technology (NASDAQ:MU) and Broadcom (NASDAQ:AVGO).
Get The News You Want
Written By: Investing.com
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.