Stocks rose Wednesday, as hopes for more fiscal stimulus supported the market, which is afraid that a surge in new virus cases in the U.S. will cause more lockdowns.
With the Dow Jones Industrial Average up 0.7%, here were the 5 biggest gainers:
Tech stocks were outperforming Wednesday, as they have been in recent weeks. Investors are looking for growth wherever they can find it, as economic turbulence may be in the cards. Still, large cap cyclical stocks like oil and consumer discretionary were rising Wednesday. Even though virus cases continue to surge — hitting a record new daily count of 60,000, according to Johns Hopkins — potential lockdowns may be met by fiscal stimulus. The White House and Congress are both signaling the will to provide more.
"This may be an uncomfortable moment for the U.S. Congress,” wrote Seema Shah, Chief Strategist at Principal Global Investors in emailed remarks to reporters. "They clearly need to continue providing fiscal support, but they cannot turn a blind eye to the fact that, long after COVID-19 is contained and defeated, the U.S. taxpayer will still be living with the consequences of this spending blitz.” Shah added, "equities and other risk assets should be supported by expansionary monetary and fiscal policy – a potential Goldilocks moment for investors.”
Ipek Ozkardeskaya, Senior Analyst at Swissquote Bank said, "Although we believe that the market has multiple reasons to value most share prices lower, the expectation of more monetary and fiscal stimulus tends to temper the headwinds."