Dow Jones increased by more than 500 points
US stocks went up as investors were optimistic about the reopening of the economy and expect the anti-Covid-19 vaccine.
Ending the session on 26/5, the Dow Jones industrial index increased nearly 530 points (2.2%) to 24,995 points. During the session, DJIA has exceeded the threshold of 25,000 for the first time since the beginning of March 2020.
S&P 500 also increased 1.2% to nearly 3,000 points, while the Nasdaq Composite slightly exceeded 0.2% compared to the reference.
The market's uptrend stemming from newly released data reinforces the belief that the economy has bottomed out. According to data from the Conference Board, the US consumer confidence index increased from 85.7 in April to 86.6 this month, higher than the prediction of 82.3 from economists participating in the visit. Dow Jones detector.
"The pandemic seems to be under control," said Bruce Bittles, an investment strategist at Baird. "Social isolation has been relaxed and we have not seen the return of Covid-19."
Bittles estimates that the recovery of the stock market and the economic recovery will depend largely on the ability to prevent Covid-19 from rebounding, especially through vaccines. This allows businesses to be open and consumers to return to spending as before. "Markets seem to be priced with a rapid economic recovery, in a V-shape," Bittles said.
Meanwhile, new home sales in April are also higher than forecast. Home sales for US households rose 623,000 homes last month, higher than the forecast of 490,000.
However, US stocks narrowed gains in the last few minutes after Bloomberg said the US was considering sanctions on Chinese companies and officials regarding the situation in Hong Kong. The news came after White House Security Advisor Robert O'Brien said Sunday that the United States could impose sanctions on China if Beijing enforces its security laws. country to Hong Kong.