Stocks bubble even higher amid optimism that the U.S. economy can climb out of its current hole relatively quickly. The S&P 500 rises 1.4% for its fourth straight gain.
A currency trader watches monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Wednesday, June 3, 2020. Asian shares are rising after Wall Street extended its gains for the third straight day, driven by optimism over economies reopening from shutdowns to stem the coronavirus pandemic.
“It’s fairly clear to us that the economy clearly bottomed in late April and early May,” said James Ragan, director of wealth management research at D.A. Davidson. “At some point the concern will be on the pace of the recovery and not just the recovery itself.” A survey from payroll processor ADP said that private employers cut nearly 2.8 million jobs last month, but that was much milder than the 9.3 million that economists told investors to expect. That raises optimism that Friday’s more comprehensive jobs report from the U.S. government may also not be as bad as feared. Economists say it may show a loss of 8 million jobs, which would be a deceleration from April’s loss of 20.5 million jobs.
Financial stocks in the S&P 500 jumped 3.8% for one of the largest gains among the 11 sectors that make up the index. JPMorgan Chase rose 5.4%, and Wells Fargo added 5.2%. They recovered more of the losses sustained earlier this year on worries that the recession would mean waves of loan defaults for them.
In other trading, chicken company Pilgrim’s Pride lost 12.4% after its CEO was among several industry executives charged with price fixing by a federal grand jury, and movie theater operator AMC Entertainment fell 2.5% after saying it may not survive the coronavirus pandemic, which has shuttered its theaters.
Many professional investors have been warning that the stock market’s rally may have been too much, too soon. The recovery for the economy is likely to be much slower than the sharp rebound the stock market has just undertaken, which could be setting investors up for disappointment.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dow futures rise as Wall Street focuses on easing coronavirus lockdowns amid civil unrestU.S. stock benchmarks are indicating gains Tuesday morning, reversing earlier declines in stock-index futures, as investors trained their attention on the...
Read more »
Stocks futures flat as Wall Street monitors economy reopening amid civil unrestInvestors are weighing excitement about the economy reopening with escalating tensions between the U.S. and China and nationwide protests.
Read more »
Wall Street closes up on signs of economic reboundA late-session rally pushed Wall Street to solid gains on Tuesday as market participants looked past widespread social unrest and pandemic worries to focus instead on easing lockdown restrictions and signs of economic recovery.
Read more »
Cinemark Misses Wall Street Q1 Financial Targets, Confirms June 19 ReopeningCinemark, the No. 3 U.S. exhibitor, reported first-quarter results below Wall Street expectations, revealing the extent of the damage done to its business by COVID-19 on its business. Revenue for t…
Read more »
Wall Street gains on Boeing, recovery hopesA jump in Boeing shares lifted Wall Street on Wednesday, with investors remaining optimistic about an economic rebound from a coronavirus-led slump amid continuing social unrest in the country.
Read more »
WSJ News Exclusive | Wall Street Firm Will Pay Junior Bankers Not to WorkA Wall Street firm is offering to pay incoming junior bankers up to $25,000 to delay starting their jobs during the coronavirus pandemic, a move that hasn’t been seen on Wall Street since the last financial crisis
Read more »