Stocks Skyrocket on Hopes the Worst Is Over

By:
Chris Gaetano
Published Date:
May 26, 2020
Major stock indices were way up today, as traders felt increasingly optimistic that the worst of the global pandemic was behind them.

As of 2:41 p.m., the Dow Jones Industrial Average was up by 648 points, the S&P 500 had gained 54 points, and the Nasdaq was up 75 points. While many market watchers had previously characterized the recent rally as a false surge divorced from fundamentals, Bloomberg said that more and more are starting to believe that these gains are the real deal, leading to fear of missing out among those who before had been content to stay on the sidelines.

Traders in particular seem to be reacting to an increasing number of jurisdictions lifting general lockdowns , along with a seeming moderation in the number of new infections. Combined, these factors have convinced many that, even if the crisis is still ongoing, we are at least in the latter half. The Wall Street Journal said that this optimism is evidenced by rising hotel bookings and air travel, as well as an uptick in mortgage applications, all of which some economists believe indicate that the damage has bottomed out. For example, the Transportation Security Administration said security screening checkpoints fell to 87,534 on April 14, 96 percent below the same day a year earlier, but by May 24, that figure had tripled, although it is still down by 87 percent from a year earlier.

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