Wall Street rejoiced on Monday as each of the major indexes gained more than 7%. This comes after market sentiments improved following reports of a decrease in new cases of COVID-19 in parts of Europe and the US.
- The Volatility Index or VIX reached two weeks low.
- Following the massive rise of the Dow, several stock markets around the world followed suit.
Dow Jones gains more than 1600 points
Monday witnessed the rise of the Dow to 22,679.99, which is a 7.73% gain over its previous close.
Components which rose the most are:
- Aircraft manufacturing company, Boeing rose by almost 20% by the end of the trading day. It is now at $148.77.
- American Express rose almost 14% and is trading at $83.87.
S&P 500 rises by 7.03%
- PVH and Capri Holdings are the biggest gainers in the SPX.
- Ford Motor and General Electric remained the most actively traded stocks in the index.
The massive rally that was witnessed on Monday doesn’t change things much. This rise was merely out of the optimism in investor sentiments. People want to believe that the worst is behind them, and they will get past this phase. However, US health and safety officials have warned that the coming two weeks are going to be crucial and that the number of deaths might increase.
The massive rally might have given some confidence to investors who have lost a lot of money lately. However, the economy is set to suffer because of the COVID-19 pandemic, and market fundamentals are still week. Wall Street will most likely enter a correction phase soon.