Stocks had a very impressive reversal today as a sharp early morning selloff turned into to a small gain by the close. It appeared that last week’s concerns about the virus gaining strength in southern states had carried over into this morning’s opening. But, as the trading session wore on dip buyers appeared and momentum shifted to the bulls.
By the close, the Dow Jones Industrial Average was up 157 points to finish the day at 25,763. The S&P 500 was up 25 points to close at 3,066. Gold was down $5 to trade at $1,731 per ounce, while oil was up $.75 to trade at $37.01 per barrel WTI.
Once again, the battle between the Fed’s liquidity (announcing they will be buying corporate bonds) and the virus’s effects on the economy was in full view today. The virus looked like it had the high ground as stocks began to trade today, but the Fed made its presence known as the day wore on, once again leaving the impression that Mr. Powell, et al, will do all in their power to make sure the economy is not overwhelmed by the virus. This is quite the battle of the Titans. Buy your popcorn and get yourself a good front row seat. This is going to be amazing to see unfold in the coming months.
Have a nice evening everyone.