Healthcare companies led the gains after Joe Biden solidified his contender status for the Democratic presidential nomination. Bernie Sanders than originally anticipated - a good sign for investors who are concerned that Mr. Sanders's more progressive pledges wouldn't be favorable for businesses.
Asian equities fluctuated on Wednesday following another sell-off on Wall Street after the Federal Reserve's steep interest rate cut exacerbated concerns about the impact of the new coronavirus on the USA and global economy.
Stocks roared back on Wall Street Monday from a seven-day rout, sending the Dow Jones Industrial Average almost 1,300 points higher amid investor optimism that central banks will take action to help shield the global economy from the effects of the coronavirus outbreak. Bond yields held near their record lows, suggesting that many investors remain nervous amid uncertainty about the economic fallout from the outbreak of the new coronavirus.
"A 50 basis point inter-meeting cut has some investors spooked that the impact of the coronavirus could be far more serious on the US economy than what investors were originally anticipating", Chopra said.
Stock markets in the USA bounced back from recent losses on Monday (March 2), as the focus turned to assurances of central bank stimulus to counter the economic fallout from the coronavirus outbreak. Canada's central bank cut rates on Wednesday, also by half a percentage point and citing the virus' effect.
Investors flocked into haven assets Wednesday, with yields on government bonds continuing to fall. Advancing issues outnumbered declining ones on the NYSE by a 4.32-to-1 ratio; on Nasdaq, a 2.69-to-1 ratio favored advancers. Apple climbed 3.4% and Microsoft rose 2.1%.
The yield on the 10-year Treasury note, a benchmark for home mortgage rates, fell to 0.96%.
Today's Weather: Boston Likely To Break The Record High For Today
This rain will last another couple hours and could end with a few wet snowflakes mixing in over higher elevations. Then the rain returns this afternoon, with a high of 8 C, according to Environment and Climate Change Canada.
Traders see a 100 per cent chance of a 50 basis point rate cut at the Fed's March meeting, according to CME Group's FedWatch tool. At this point it's likely that we will see the United States dollar plunged even further, after the Federal Reserve has made it obvious that the USA dollar has rate cuts coming down the road, it makes sense that we will continue to see this market rollover.
While the cut gave some investors exactly what they had been asking for, Federal Reserve Chairman Jerome Powell acknowledged that the ultimate solution to the virus challenge will have to come from health experts and others, not central banks.
The broad-based S&P 500 bounced back 4.6 percent to finish at 3,090.23, while the tech-rich Nasdaq Composite Index advanced 4.5 percent to 8,952.16.
Bank of Japan Governor Haruhiko Kuroda said on Monday that Japan's central bank would take necessary steps to stabilize financial markets.
The S&P 500 remains down 8.7 per cent from its February 19 record high close. The big swings in recent days will likely continue until investors get a sense of what the worst-case scenario really is in the virus outbreak.
Technology stocks also drove much of the gains Wednesday. Norwegian Cruise Line fell 4.1% and Royal Caribbean Cruises slid 1.4%. It rose almost three per cent as investors flocked to the safety of gold and USA bonds. The price of benchmark US crude fell 15% last week.
The dollar received to 107.30 yen from Tuesday's 107.24 yen. The euro was flat at $1.1171.