Stocks rallied as hopes that we actually might be flattening out the virus curve superseded the reality that the economic damage, however this plays out, is going to be severe. The stock market moving on emotion is certainly not a new concept. We saw fear overtake all other thoughts for several weeks as stocks plunged to the tune of about 35%. Today, just a glimmer of hope that we could get to the other side of this medically with less loss of human life than many projected, had investors feeling just a little better about things. Of course, this can all change, and likely will, on a daily basis, but it’s ok to feel just a little better about things, at least for a day.
As for the markets, by the close the Dow Jones Industrial Average was up 1,627 points to finish the day at 22,679. The S&P 500 was up 175 points to close at 2,663. Gold was up $63 to trade at $1,708 per ounce, while oil was down $1.99 to trade at $26.35 per barrel WTI.
We try not to get too high or too low with these moves because things can change so quickly in times like this. We’ve also mentioned that counter trend rallies in a bear market are sharp and impressive. Is today’s move the start of a rebuilding process? Are the lows in? Do we have to go down and test those previous lows? We obviously don’t know the answer to these questions. Let’s enjoy days like today, but let’s take them one day at a time
Have a nice evening everyone.