With good news from rising oil prices, the economy may not be too pessimistic, to many countries reopening their economy after the blockade to prevent the Covid-19 epidemic, investors on Wall Street. excitedly down the money in the session on 5/5.
After falling to a record price, the price of "black gold" has recovered strongly in the last week and in the session on 5/5 jumped 20%, helping energy stocks sublime.
Along with that, many countries seriously affected by the Covid-19 epidemic such as Italy, Spain, or some US states have gradually reopened their economic activities, helping investors to have high expectations for the recovery. gradually recover the economy.
At the end of the session, the Dow Jones advanced 133.33 points (equivalent to 0.6%) to 23,883.09 points. The S&P 500 edged up 0.9% to 2,868.44 points, and the Nasdaq Composite increased 1.1% to 8., 809.12 points.
In the session on 5/5, the pharmaceutical stocks also prospered with positive prospects on the development of the Covid-19 vaccine.
In the middle of the session, the main indices increased sharply, at a time when Dow Jones climbed over 400 points. However, the upward momentum during the session narrowed towards the end of the session after Federal Reserve Vice President Richard Clarida told CNBC that the US economy may still need more support on both fiscal and monetary.
Shares of pharmaceutical firm Pfizer increased by 2.4% and led the rise of Dow Jones. With the S&P 500, health and technology stocks were the strongest gainers, with more than 1%.
"The risk is decreasing as the states announce the restart of economic activity, the number of new infections is declining," said Tom Lee, founder and research director at Fundstrat Global Advisors, an analyst. In our opinion, these are the main reasons that will push up the stock market and the buying volume of stocks is dominating. "
The main indices on Wall Street market still increased strongly despite negative data on service activities. Specifically, according to the latest figures from the Institute of Supply Management (ISM), the index of purchasing managers of the service sector decreased from 52.5 in March to 41.8 in April, the lowest level since since March 2009.
"The stock and financial markets are increasingly expecting to resume their economic activities and loosen the regulation on social spacing for ordinary people to return to normal life. But the recovery process will not take place. the speed of opening is different in every place "- economist Eric Winograd at asset management firm AllianceBernstein said.
Investors are considering the prospect of reopening the economy and the risk of a second outbreak of Covid-19. Gavin Newsom, Governor of California State, said retailers in the state could sell carry-on-road products from May 8.
New York Governor Andrew Cuomo said the number of new hospitalizations and deaths from the Covid-19 epidemic was declining, suggesting that the US epidemic "has passed its peak and is gradually cooling off". However, Mr. Cuomo added that the decline in disease activity was not as fast as state officials expected.
