US Market ends into positive territory

The US equity market finished session into positive territory after recouping losses late afternoon on Monday, 04 May 2020, as investors shrugged off renewed geopolitical tensions over a further escalation of the long-running conflict between the world's top two economies, which had weighed on stocks earlier in the session. At closing bell, the Dow Jones Industrial Average rose 26.07 points, or 0.1%, to 23,749.76, well off its session low at 23,361.16. The S&P 500 - a gauge of US retirement and education savings accounts - gained 12.03 points, or 0.4%, to 2,842.74. The tech-heavy Nasdaq Composite Index rose 105.77 points, or 1.2%, to 8,710.7

A ramping up of tensions between the White House and China over the origins and handling of the coronavirus pandemic weighed on markets around the world. The U.S. President Donald Trump said on Sunday that he believed that a mistake in China was the cause of the spreading coronavirus pandemic, though he did not present any evidence for the claim.

 

U.S. Secretary of State Mike Pompeo said on Sunday there was "a significant amount of evidence" that the new coronavirus emerged from a Chinese laboratory, doubling down on Washington's pressure on China over the virus' origin as U.S. deaths and economic damage mount.

The accusation came after Donald Trump's threat late last week of retaliatory measures against China as punishment for the outbreak, once again sparking tariff fears that rattled markets through much of the last two years.

The US top spy agency said on Thursday that it had determined that the virus was not manmade but was still investigating whether it was caused by an accident at a laboratory in Wuhan. The separate reports stated that U.S. intelligence documents accused China of concealing the severity of the coronavirus outbreak to hoard medical supplies.

Energy stocks were the biggest gainers as crude oil prices rallied for a fourth straight day. WTI crude futures expiring in June climbed as much as 6.2% before settling up 5.8%, at $20.92 per barrel. International benchmark Brent crude gained 5.1%, to $27.78 per barrel. Both commodities are rebounding off recent lows that were spurred by a coronavirus-led global demand crunch.

Airline stocks slipped after the famed investor Warren Buffett said over the weekend that Berkshire Hathaway sold its entire position in the industry's "big four" carriers -American, Delta, Southwest and United. The venerated, 89-year-old investor underscored how much uncertainty the virus has created in financial markets, including for airlines. Shares of Delta lost 6.4%, American Airlines fell 7.7%, and Southwest shed 5.7% and those for United Airlines fell 5.1%. Boeing Co. shares were 1.4% lower, after Buffett on Saturday referred to the aeronautics and defense contractor as hard to evaluate.

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