US Market ends higher in volatile trade

The US equity market finished volatile session higher on Wednesday, 08 April 2020, as risk sentiments were upbeat amid optimism that coronavirus infections around the world are nearing a peak and on news that US Senator Bernie Sanders dropped out of the presidential race. At closing bell, the Dow Jones Industrial Average rose 655.78 points, or 2.89%, to 23,309.64. The S&P 500 gained 77.31 points, or 2.91%, to 2,736.72. The Nasdaq Composite added 178.49 points, or 2.26%, to 8,065.75.

The US market commenced trading with firm footing after President Donald Trump said Americans might be getting to the top of the curve in relation to the outbreak, and New York Governor Andrew Cuomo said the state's efforts at social distancing were working in getting the virus under control. A slowdown in the number of hospitalizations and intensive care admissions in New York suggest the number of new Covid-19 cases could be easing in the nation's biggest city, though health officials have warned that people can't let down their guard. In Italy, new coronavirus infections have been declining.

 

Stocks gained an additional lift in the wake of Sanders' decision to drop his campaign for the White House. Sanders' embrace of a Medicare for all healthcare policy would have essentially abolished private insurance and had cast a shadow over healthcare stocks for months. Now that Sanders is out, former US Vice President Joe Biden is now widely considered the man likely to face off against President Donald Trump. Wall Steet considers Biden to be a more market-friendly candidate.

The minutes from two emergency meetings of the Federal Reserve showed officials grew increasingly concerned by the swiftness with which the coronavirus outbreak was harming the U.S. economy and disrupting financial markets, prompting them to take forceful action.

Top U.S. Democrats in Congress said on Wednesday they would back the Trump administration's request for $250 billion more in aid for small businesses if it includes additional money for hospitals, local governments and food assistance. The package would add to the $2.3 trillion in stimulus already approved and meant to make up for the wages and incomes lost after Americans were ordered to stay home.

Oil prices rose ahead of a meeting on Thursday between OPEC members and allied producers. Traders hope the meeting could lead to output cuts to shore up prices. Brent crude - the global benchmark- added 5.6 percent to $33.2567 per barrel after falling 3.6 percent on Tuesday. US West Texas Intermediate (WTI) crude rose 9.9 percent to $25.98 a barrel.

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