Wall Street rises with economic hopes; bank stocks jump

Daniel Fowler
May 28, 2020

Tech-related shares underperformed the broader market on Wednesday after leading the recent rally.

Hopes for potential COVID-19 vaccines under development have also helped propel stocks.

The movements followed up on strong gains in Europe, where authorities proposed a 750 billion euro ($825 billion) recovery fund to help carry the region through the recession caused by the response to the coronavirus pandemic. The Dow Jones Industrial Average was up 356 points, or 1.4%, to 25,351. Losses for big tech stocks and other, earlier winners of the stay-at-home economy were holding the gains in check Wednesday.

Rising U.S. -China tensions that weighed markets last week were shrugged off, even as Secretary of State Pompeo said the U.S. certified that Hong Kong is no longer politically autonomous from China, a move that could have far-reaching geopolitical consequences.

Tesla (NASDAQ:TSLA) will also be in focus as the electric vehicle manufacturer has dropped the price of its cars in North America and China by up to 6% in a bid to boost sales.

Shares rose in Tokyo, Sydney and Shanghai but dropped in Hong Kong, where tensions are flaring over Beijing's effort to exert more control over the former British colony. JPMorgan Chase was up 6% while Citigroup advanced 7.3%.

Some big technology companies that had been stalwarts during the market's sell-off took a step back Wednesday, which kept the market's gains in check in the early going.

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Saunders said the suspect vehicle drove south on Peter Street, then west on Front Street and then north on Spadina Avenue. Anyone with information is asked to contact police or Crime Stoppers.

Microsoft slipped 0.5%, Amazon lost 0.5% and Nvidia dropped 2.4%. The president of the European Commission called it "an ambitious answer", though it still needs to be endorsed by every country in the European Union.

In Asia, Japan's Nikkei 225 rose 0.7%, but other markets were weaker.

Fears about being denied access to American stock exchanges, and their deep wells of funding, may encourage more Chinese companies to consider Hong Kong as an alternative to NY for new listings, despite the geopolitical risks around the financial hub.

Amid the recent gains, US tensions with China have cast a cloud on markets.

The yield on the 10-year Treasury held steady at 0.69%.

Seevol.com reported a 4.26-million-barrel decline for the week to May 22 at the Cushing, Okla. hub that stores crude delivered against expiring spot contracts of WTI. Brent crude, the global standard, slipped 3.2% to $35.55 per barrel.

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