The S&P 500 and the Nasdaq hit an all-time high on Monday after news of a potential coronavirus treatment lifted investors’ sentiment. While, the Dow edged past 28,000 points for the first time in six months boosted by rally among growth-sensitive stocks.
The Dow Jones Industrial Average (DJI) added 378.13 points, or 1.4%, to close at 28,308.46 and the S&P 500 rose 34.12 points, or 1% to close at 3,431.28. The Nasdaq Composite Index closed at 11,379.72, adding 67.92 points, or 0.6%. The fear-gauge CBOE Volatility Index (VIX) decreased 0.8%, to close at 22.37. Advancing issues outnumbered declining ones for 2.52-to-1 ratio on the NYSE and a 1.26-to-1 ratio on the Nasdaq favored advancers.
How Did the Benchmarks Perform?
On Monday, the Dow closed above 28,000 for the first time in six months and was only 4.2% away from its record closing high on Feb 12, 2020. The Boeing Company BA gave the Dow its biggest lift as the aircraft maker shares surged 6.4%. Boeing stocks sports a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Sell) stocks here.
Of the 11 major sectors of the S&P 500, only health sector ended in the red. Energy and financials emerged as the highest gainers of the broader index, advancing 2.8% and 2.3% for the session. Companies benefiting from economic reopening also closed higher. Shares of American Airlines Group Inc. AAL and United Airlines Holdings, Inc. UAL closed at least 10% higher for the day.
Overall, the S&P 500 posted 45 new 52-week highs and no new lows, while the Nasdaq Composite recorded 84 new highs and 36 new lows.
Convalescent Plasma Treatment Lifts Market Sentiments
On Sunday, the U.S. Food and Drug Administration gave emergency authorization for convalescent plasma treatment for hospitalized coronavirus patients. The treatment uses blood plasma donated by people who have recovered from the Covid-19.
Post the authorization, President Donald Trump said at a news conference on the same day that the plasma treatment cuts the coronavirus mortality rate by 35%.The Trump administration is also considering fast-tracking AstraZeneca PLC AZN and Oxford University’s experimental COVID-19 vaccine and hopes to deploy it in November before Americans head to the Presidential election polls.
Additionally, the news brought optimism among traders and helped beaten-down cyclical sectors to rally on Monday. Stocks from energy and industrials sectors and areas that would benefit from a faster economic rebound helped the Nasdaq and the S&P 500 rally for the session.
Stocks that Made Headline
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Boeing Company (BA): Free Stock Analysis Report
AstraZeneca PLC (AZN): Free Stock Analysis Report
United Airlines Holdings Inc (UAL): Free Stock Analysis Report
Tractor Supply Company (TSCO): Free Stock Analysis Report
American Airlines Group Inc. (AAL): Free Stock Analysis Report
XBiotech Inc. (XBIT): Free Stock Analysis Report
Prometic Life Sciences Inc. (LMNL): Free Stock Analysis Report
Cesca Therapeutics Inc. (THMO): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.