Stock Market News for Jun 9, 2020

Wall Street continued its winning streak on Monday buoyed by gradual reopening of the U.S. economy and better-than-expected economic data. Moreover, investors' remained hopeful that Fed will continue its ultra-dovish monetary stance as it will meet for 2-day FOMC starting Tuesday. All three major stock indexes rallied sharply. Notably, the S&P 500 has become the second major stock index to rebound to positive territory year to date, after the Nasdaq Composite.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) jumped 1.7% or 461.46 points to close at 27,572.44, its sixth straight positive close for the first time since Sep 13. Notably, 24 components of the 30-stock index ended in the green while 5 finished in red and one remained unchanged. The blue-chip index still needs to rally 3.4% to become green year to date. Moreover, the index is 6.8% below its all-time high posted on Feb 12.

The biggest gainer of the Dow was The Boeing Co. BA, which rallied 12.2%. The Boeing carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 climbed 1.2% to close at 3,232.39. The Energy Select Sector SPDR (XLE), the Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE) and the Industrials Select Sector SPDR (XLI) rallied 4.5%, 2.7%, 2.2% and 2%, respectively. Notably, all eleven sectors of the benchmark index closed in positive territory. The broad-market index is currently 4.8% away from its all-time high registered on Feb 19.

Meanwhile, the tech-heavy Nasdaq Composite closed at 9,924.74, surging 1.1% or 110.66 points due to strong performance of large-cap tech stocks. During the intraday trading session, Nasdaq Composite reached a fresh all-time high of 9,927.13. Additionally, the tech-laden index has posted a fresh all-time high closing on Monday.

The fear-gauge CBOE Volatility Index (VIX) increased 5.3% to close at 25.81. A total of 16.46 billion shares were traded on Monday, higher than the last 20-session average of 12.35 billion. Advancers outnumbered decliners on the NYSE by a 4.61-to-1 ratio. On Nasdaq, a 3.02-to-1 ratio favored advancing issues.

Reopening of Economy and Encouraging Economic Data

The U.S. economy is reopening systematically since late May. All 50 states have opened up in one form or the other after nearly two months of lockdowns to control the spread of the deadly virus. As the economy is reopening, various economic data are stabilizing.

Notably, the nonfarm payroll data of May released by the Department of Labor reported that the economy added historically high 2.5 million jobs. In addition to job data, growing consumer confidence and higher expectations for the next six months, better-than-expected ISM manufacturing and services index, and a solid increase in housing and vehicle sales have strengthened investors' confidence.

Fed's FOMC Meeting

The 2-day FOMC meeting of the Fed will begin from Tuesday. The central bank has done exceptionally well with respect to maintain credit flow during the period of lockdowns. Market participants expect the Fed to continue its unlimited asset purchase program and to keep the benchmark interest rate at 0% to 0.25%.

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