The major indices are all trading significantly higher at midday as stocks recovered from yesterday’s late-day dip overnight. Even though the global COVID-19situation is still not stable, with especially the Brazilian outbreak causing concerns, the U.S., Asian, and European numbers continue to fuel the risk rally. The Dollar Index (DXY) is trading at its lowest level in almost three weeks, thanks to the easing global dollar shortage that has been weighing on the banking sector.
Facebook Announces New "Shops" E-Commerce Platform
Facebook (FB, +5.2%) surge to a fresh all-time high gave a boost to the Nasdaq and the broader market, as investors hailed the firm’s announcement regarding its new "Shops" e-commerce platform, which could fare well in the post-COVID environment. In economic news, the Eurozone Consumer Confidence Index was in line with expectations, which gave a lift to global risk assets in pre-market trading. U.S. crude oil inventories fell by 5 million this week, much more than the consensus estimate, and the commodity added to its recent gains thanks to the normalizing market conditions.
Dow: 24,644, + 438 or 1.8%
S&P 500: 2,979 + 57 or 1.9%
Nasdaq: 9,387, + 202 or 2.2%
Russell 2000: 1,349, + 41 or 3.2%
Market breadth has been confirming the rally this morning thanks to the relatively strong small-caps, with advancing issues outnumbering decliners by a 9-to-1 ratio on the NYSE at midday. Only 5 stocks hit new 52-week lows on the NYSE and the Nasdaq, while 72 stocks hit new 52-week highs. The major indices have been trading above their daily VWAPs (Volume-Weighted Average Price) for most of the morning session, pointing to intraday buying pressure. Energy-related issues, industrials, and financials have been spearheading today’s advanced, but tech stocks have also been showing strength, while the lagging safe-haven sectors also provide proof of the risk-on sentiment among investors. Stay tuned!