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Stocks Soar Upward; S&P Erases Its Losses For 2020

   DailyWire.com
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On Monday, the S&P 500 soared back into positive numbers for the year after plunging into the abyss in March. “Stocks finished the day at their session highs with the S&P 500 jumping 1.2%, or 38.46 points, to 3,232.39. The equity benchmark turned positive for the year in the final moments of Monday and has now bounced more than 47% off its March low. At one point this year, the S&P 500 was down more than 30%. It’s now positive for 2020 by 0.05%,” CNBC reported.

The Dow Jones Industrial Average closed at 27,572.44, 461.46 points higher; the NASDAQ Composite closed at 9,924.74, a “fresh record high,” CNBC noted.

“The Federal Reserve has been wildly successful in terms of keeping credit flowing during the pandemic, with major U.S. equity and debt benchmarks already recouping significant lost ground since the COVID-19 pandemic forced the nation into lockdown. The stock rally included not only high-flying technology companies that provided sought-after services during recent shutdowns, but also companies battered by low oil prices and the near halt in travel,” MarketWatch reported.

Stanley Druckenmiller, chairman and CEO of the Duquesne Family Office, stated on CNBC’s “Squawk Box,” “What is clearly happening is the excitement of reopening is allowing a lot of these companies that have been casualties of Covid to come back and come back in force. With a combination of the Fed money and, in particular, a vaccine where the new has been very, very good.”

Bill Callahan, an investment strategist at Schroders, pointed out, “From the market’s perspective, the economic impact of COVID is basically over. We still may see spikes in cases, but it will be difficult politically to shut down economies again.”

Michael Pearce, senior U.S. economist at Capital Economics, noting that on Friday the Labor Department announced 2.5 million new jobs, a record high, added, “The 2.5 million rebound in employment last month reverses only a small fraction of the jobs lost since February. But considering we and the consensus had been braced for another large decline, it builds on the signs from some of the other macro data this week that economic activity is rebounding faster and more vigorously than we had anticipated.”

Marc Chaikin, CEO of Chaikin Analytics echoed, “It appears that the most rapid bear market in history has been followed by the most dramatic recovery in history. While COVID-19 cases are still growing in certain states, particularly outside of densely populated urban areas, investors see the glass as half-full and are looking ahead 12-18 months.”

Travel demand is rising, as evidenced by these numbers on Monday: United Airlines rose 14.8%; American Airlines leaped 9.2%. Hertz Global Holdings rocketed 115.2%, “enough to erase all the losses suffered since the car rental company declared bankruptcy, amid increasing signs that travel demand continues to improve,” MarketWatch noted.

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