US Stock Futures on the Upswing Following Massive Economic Rebound

Daniel Fowler
March 31, 2020

U.S. stock index futures rose on Tuesday at the end of one of Wall Street's worst first quarters on record, as an unexpected expansion in Chinese factory activity raised hopes of a more stable economic recovery from the coronavirus pandemic.

Stocks rose for the fourth time in five days, with all 11 S&P industry sectors ending higher, as investors looked past dismal USA economic data: Dow +3.2%, S&P 500 +3.3%, Nasdaq +3.6%.

Shares of Johnson & Johnson were up 4.5 percent after it said on Monday that plans to start human testing of its experimental coronavirus vaccine by September and make it ready for emergency use in early 2021.

Despite the recent comeback, Wall Street is headed for its worst start from the beginning of the year.

"You are looking for a way to re-enter the market on stocks that are going to give you an opportunity to participate", said Phil Blancato, CEO of Ladenburg Thalmann Asset Management in NY.

Stocks closed higher again on Wall Street Monday, led by health care stocks, bringing the market's surge over the past week to 17%. It is on track for its worst quarter since 2008 and the worst first quarter since 1938.

Hospital ship, temporary hospitals provide relief, but the need is far greater
The USNS Comfort and the Javits Center won't handle COVID-19 patients. "It was a pretty clear picture", Fauci told CNN on Monday. Some 790 deaths have occurred in New York City, the country's financial capital and the most populous U.S. city.

At 9:52 a.m. ET the Dow Jones Industrial Average was up 83.28 points, or 0.38%, at 21,720.06, the S&P 500 was up 25.18 points, or 0.99%, at 2,566.65 and the Nasdaq Composite was up 93.46 points, or 1.25%, at 7,595.84.

However, the prospect of more government stimulus has given investors something to hold on to as they wait for signs of economic relief.

JPMorgan Chase & Co said on Saturday it expected real US gross domestic product to fall 10% in the first quarter and plunge 25% in the second quarter.

The Nasdaq is down 1,198.45 points, or 13.4%.

Abbott Laboratories was the top gainer among S&P 500 components, rising almost 10% after it won USA approval for a diagnostic test that can detect coronavirus in minutes.

Volume on USA exchanges was 12.19 billion shares, compared to the 15.81 billion average for the full session over the last 20 trading days.

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