U.S. stocks surged Wednesday as former U.S. Vice President Joe Biden performed strongly in the Super Tuesday primary, while upbeat U.S. economic data helped ease investors’ concerns about the new outbreak,media reported. All three major U.S. indexes rose at least 3.5 percent on Wednesday, with the Dow Jones Industrial Average up 1,173.45 points, or 4.53 percent, to 2,709.86.
The Standard and Poor’s 500 index rose 126.75 points, or 4.22 percent, to 3,130.12 and the Nasdaq composite rose 334.00 points, or 3.85 percent, to 9,018.09.
Apple shares closed up 4.64 percent at $302.74 in U.S. trading Wednesday, Google parent Alphabet inc. rose 3.36 percent to $1,386.52 and Amazon closed up 3.5 percent at $1,975.83. Microsoft closed up 3.67 per cent at $170.55, Facebook closed up 3.16 per cent at $191.76, Netflix closed up 4.07 per cent at $383.79 and Tesla edged up 0.54 per cent to $749.50.
U.S. chip leaders rose more than 4 percent to $58.68, intel.co.s., up 4.84 percent, Qualcomm up 4.95 percent at $81.80 and Broadcom up 4.08 percent to $285.45. Texas Instruments closed up 4.60 percent at $119.05, Micron Technology closed up 6.74 percent at $55.29, Infinity Closed up 7.00 percent to $284.51 and AMD closed up 7.19 percent at $50.11.
The Standard and Poor’s 500 index rebounded about 6 percent from Friday’s closing low, but is still about 7.4 percent below its all-time high on February 19.
U.S. stocks have been in turmoil since February 19th, as the fast-spreading outbreak of new coronapneumonia sparked widespread investor concernabouts about a recession.
Former Vice President Joe Biden is the front-runner for the Democratic presidential nomination after a series of primary victories, a relief to market participants worried about his rival Bernie Sanders’s more aggressive policy stance.
Chuck Carlson, chief executive of Horizon Investment Services, an investment services firm, said: “Given the market situation yesterday, it is clear that today’s rally is the reason for Biden, and this may be an opportunity to rebound. “
U.S. time on Tuesday, the Federal Reserve unexpectedly cut interest rates by 50 basis points to prevent the economic damage that the outbreak could cause. The number of confirmed cases of new coronary pneumonia worldwide has risen to 93,000, scareing global markets.
Carlson added: “Investors may reconsider the Fed’s rate cut today, at least the Fed has expressed support.” “
But Carlson noted that the new coronavirus is likely to remain uneliminated in the first half of this year. “The market doesn’t like uncertainty, which is the most uncertain situation I’ve seen in a while,” he said. “
On the economic front, data showed stronger-than-expected growth in private-sector job growth, while the U.S. services sector expanded at its fastest pace in a year, according to a report from ADP and the Institute for Supply Management.
In addition, the Mortgage Bankers Association reported that the average 30-year fixed mortgage rate fell to a seven-year low last week.