S&P 500 Back Above 3000 Points as Stock Markets Rallied on Economic Reopening
Stock markets have extended the upside momentum into a new week as all the major indices are shining on prospects of economic reopening and a potential coronavirus vaccine. Stocks related to travel and tourism are among the biggest gainers as their business operations are directly tied to economic reopening.
Cruise line companies that were hit harder by the travel restrictions and lockdowns rose at a double-digit percentage. Carnival shares grew 10.8%, while MGM Resorts stock price grew 8.9% in Tuesday stock trading. United Airlines shares jumped more than 14% as booking trends accelerated due to the resumption of economic activities.
“The recovery theme continues to support risk assets as more businesses around the world are given the green light to reopen, fueling hopes of a sustainable recovery as economic life is resuscitated after weeks of shutdowns,” said Raffi Boyadjian, senior investment analyst at XM.
The S&P 500 surged above the 3000 levels for the first time since early March while the Dow Jones Industrial Average also rose above 25,000 points and the Nasdaq Composite is only short 4% from a record high that it had hit in February.
The economic data also point recovery trends, with consumer confidence hit 86.6 level this month, up from 85.7 in April and also up sharply from the estimate of 82.3. Oil prices have also been accelerating the upside momentum, with Brent surged to $35 a barrel while US oil traded around $33 a barrel on Tuesday.
The US president also cheered the stock market rally. He tweeted: “Stock Market up BIG, DOW crosses 25,000. S&P 500 over 3000. States should open up ASAP. The Transition to Greatness has started, ahead of schedule. There will be ups and downs, but next year will be one of the best ever!”