Stock gains accelerated by midday Wednesday, as a third tailwind, added on to two in the morning, emerged. Senator Bernie Sanders dropped out of the 2020 presidential race, allowing Senator Joe Biden to be the presumptive Democratic nominee. This means less potential business regulation compared to a Sanders presidency.
The morning news flow featured positive coronavirus trends, as thousands of Wuhan citizens rode trains after the lockdown was eased. And health experts expect the peak case count in New York to arrive in a week. For the near-term, households and small businesses may be getting the relief they need, as a $1 trillion government spending bill could pass soon, according to Democratic House Speaker Nancy Pelosi. That’s added to a $2 trillion plan already in motion.
All three major U.S. indices rose Wednesday, with the S&P 500 up 2.56%.
Crude oil’s price gain moderated from 5% to 2.5%.
Investors were net sellers of the 10 year treasury bond, sending the price down and the yield up to 0.75%, even as the Federal Reserve pumped trillions into the market.
On the election, the suspension of the Sanders campaign means less potential banking and health care regulation. United Health (UNH) - Get Report rose more than 4%. Cigna (CI) - Get Report rose more than 4%. CVS (CVS) - Get Report, which owns Aetna, but is still heavily weighted to its core staples and pharmacy business, rose just under 3%.
Banks were getting a lift with higher long-term interest rates and the Sanders drop-out.
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