Stocks rally despite virus’ resurgence; Dow up more than 579 points.
The Dow and broader U.S. stock market rallied sharply on Monday, as investors seemingly looked past the shocking rise in COVID-19 infections over the weekend.
All of Wall street’s major indices reported gains, with the Dow Jones Industrial Average (DIA) climbing 579.50 points, or 2.3%, to 25,595.05.
The broad S&P 500 Index (SPY) of large-cap stocks gained 1.5% to close at 3,053.31. All 11 primary sectors finished with gains. Industrials led the pack, followed by consumer staples, utilities and materials companies.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) gained 1.2% to close at 9,874.15.
The CBOE Volatility Index (VXX), commonly known as the VIX, fell to a session low of 32.69 on a scale of 1-100 where 20 represents the historic average. The so-called ‘fear index’ would eventually settle down 5% at 32.99.
In economic data, U.S. pending home sales spiked a record amount in May, offering a strong sign that record-low mortgage rates were spurring housing activity.
Pending home sales rose 44.3% in May, the National Association of Realtors (NAR) reported Monday. Analysts in a median forecast were calling for a gain of around 20%.
Meanwhile, the Dallas Fed Manufacturing Business Index improved to -6.1 in June from -49.2 the month before.
The Final Word: COVID-19 has reemerged as a major threat to the United States. There are now more than 2.5 million infections across the country, accounting for roughly 25% of the global caseload.