Stock indexes rise on optimism of recovery, shrink back

Daniel Fowler
May 28, 2020

The S&P 500 posted five new 52-week highs and no new lows; the Nasdaq Composite recorded 35 new highs and eight new lows. The Trump administration is examining proposals to provide cash incentives to encourage unemployed Americans to return to work, a top economic adviser said in an interview on Fox News.

However, the indicator did not managed to hold above the key psychological level of 3,000 points after President Donald trump said that the U.S.is working on a strong response to China's planned legislation on the safety of Hong Kong and will announce it before the end of the week. The index rose almost 10% over the past two sessions for its biggest two-day increase since April 8-9.

Michael Darda, MKM Partners' chief market strategist and chief economist, said: "Certainly the market has been making a V-pattern upward and there's been a tremendous amount of skepticism around that but we are just starting now to see some evidence in the data turning".

The euro gained 0.15% at $1.0999 while the pound sterling slipped 0.64% at $1.2256.

The S&P 500 is up 80.68 points, or 2.7%. JPMorgan Chase was up 5.8% while Citigroup advanced 8.5%. Mega-cap technology companies that powered the stock market's recovery off its March low have lagged in recent days.

European stocks also ticked higher.

SpaceX, NASA closely monitoring weather prior to historic astronaut launch
The men have been in quarantine since May 13, with special measures taken given the covid-19 pandemic. It's the final step in certification needed to operate long-term manned missions to space.

News of the plan underpinned a broad market rally in Europe as bank stocks, which typically rise or fall on the economic outlook, provided the biggest boost to equities.

"It's hard enough in this pandemic to get trade going on because of an uneven recovery", Mr. Gerard said.

Crude prices slid on the news as a resurgent U.S. -Sino stand-off could weigh on global businesses and oil demand, which already has been hit by the coronavirus pandemic.

The main gauge for USA crude-oil prices edged down 2% to $33.65 a barrel, after rising for seven of the past eight sessions. But analysts say the recovery fund proposals, if they can win over European Union members skeptical of an earlier Franco-German plan, could push the euro higher. Facebook lost 1.8% and Netflix shed 0.3%.

MSCI's ex-Japan Asia-Pacific index fell 0.4% overnight as Hong Kong and mainland China shares extended declines.

The yield on the benchmark 10-year U.S. Treasury fell to 0.685% from 0.697% Tuesday.

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