Stock market live updates: Dow jumps 10%, hope for a stimulus deal, gold surging

All eyes are on Congress to pass a much-needed stimulus bill to rescue the economy from the coronavirus damage. The stock market is staging a turnaround with the Dow rebounding from its 2016 low. Here’s what’s happening:

With just 20 minutes of trading left, stocks accelerated gains with the Dow jumping 1,940 points, or 10.44%. The S&P 500 and Nasdaq are up 8.8% and 7.6%, respectively. – Stevens

The iShares U.S. Home Construction ETF (ITB) jumped more than 14%, putting it on track for its best day since 2008. New home sales came in at 765,000 for February, which topped analysts expectations of 743,000, according to estimates from FactSet. The January number was also revised to 800,000 from 764,000. Stocks leading the ETF higher included KB Home and Toll Brothers, each of which gained 32%. – Stevens

With roughly one hour left in the trading session, the Dow was up 1,700 points, or 9.1%, as investors cheered the apparent progress made in Washington over potential fiscal stimulus amid the coronavirus outbreak. Those gains lifted the Dow off of its lowest levels since late 2016. —Imbert

Amid the coronavirus-induced market sell-off, retail investors have sold stocks at a record pace, according to Saut Strategy founder Jeffrey Saut. He said that Monday was the single largest day of selling in his data’s history, and that it was the eighth straight day of retail investors offloading equities. Over that stretch, investors sold a total of $5.5 billion worth of stocks, which is roughly $700 million per day. “For context, in the Q418 sell-off they [retail investors] sold for 24 straight days, for a total of $8.5bn,” he said. Many experts say retail investors should try to resist the urge to time the market, which is difficult even for professional investors. Selling at the wrong time can not only lock in losses, but also puts investors at risk of missing the market’s best days, which typically follow the worst, according to analysis from Bank of America. Additionally, Goldman Sachs found that “households,” which they define as retail investors as well as some professionals such as hedge funds, are the only subset of shareholders that have “sold equities during each bear market since 1950.” – Stevens, Imbert

Source: https://www.cnbc.com/2020/03/24/stock-market-live-updates-dow-futures-up-900-limit-up-hope-for-a-stimulus-deal.html

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