USA close: Stocks finish higher as markets rally on economy reopening

Andrew Cummings
May 31, 2020

But analysts have warned that worsening ties between Washington and Beijing over the handling of the coronavirus outbreak and a new national security law in Hong Kong pose a major threat to the stock market's strong recovery from the crash earlier this year. The Shanghai Composite edged up 0.33%; Hong Kong's Hang Seng slipped 0.72%; while Japan's Nikkei-225 rose 2.32%.

Donald Trump also vowed to provide an update on the government's response to the matter by the end of the week.

The S&P's move pushes the index past its 200-day moving average for the first time since March 6.

MGM Resorts stock has increased more than 70 percent in the same period and Disney has grown 27 percent amid optimism about plans to reopen businesses and other activities following restrictions to prevent the spread of the COVID-19 pandemic.

On top of vaccine-related news, Shawn Snyder, head of investment strategy at Citi Personal Wealth Management, pointed to better-than-expected home sales data and comments from JPMorgan Chase JPM.N CEO Jamie Dimon.

Data showed United States consumer confidence nudged up in May, adding to hopes the worst of the impact of the shutdown in economic activity was probably in the past. Still, sectors such as financials .SPSY and industrials .SPLRCI charged ahead with gains of 5% and 4%, respectively.

Revised government data showed the US economy shrank at an annualized 5% rate in the first quarter instead of 4.8%. But he questioned how much further the market would rise with the USA presidential election in November and simmering U.S. The Nasdaq Composite was up 48.48 points, or 0.52 per cent, at 9,460.84. Stock valuations are "too high in general and leaves no room for error while investors aren't paying enough attention to rising US-China tensions".

Equity of companies that stand to benefit the most under reopenings, such as the airlines and retailers, led the major indexes higher Tuesday and Wednesday.

Advancing issues outnumbered declining ones on the NYSE by a 4.91-to-1 ratio; on Nasdaq, a 2.35-to-1 ratio favored advancers.

On U.S. exchanges 12.11 billion shares changed hands compared with the 11.26 billion average for the last 20 sessions.

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