US markets are rebounding from the bottom after the worst session in four months. Investors are speculating that global efforts to fight the coronavirus will be able to control it and stop the number of new infected and additional deaths.
Each group in the S & P500 index is advancing, with technology and banking stocks leading the rally. Some of the companies that suffered the most damage during the sale, such as chip, casino and airline manufacturers, are recovering today. Oil is also recovering today, covering yesterday’s downturn, but remains down 9% over the last five trading days. Demand for safe heavens is declining, with 10-year bonds and gold weaker today. The US dollar remains strong.
Short-term collapse, but we expect recovery to continue until the end of the US session as risky assets continue their rally. Markets remain focused on good economic and corporate data.
After the WHO press conference, it became clear that they were sending specialists to China to help combat the virus. There are no new cases reported in the United States, and there are reports of a vaccine currently under development.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov