The COVID-19 virus in Wuhan, China is on a slowdown track right now and as a result of this, the US stocks ended on an all-time high this Wednesday. As the number of infected in the Corona Virus has taken a halt, the stock market is back on track as investors have got back all their confidence.
Here’s a brief of all the major indexes
Speaking of the leader of all gains, the Dow Jones Industrial Average (DJIA) leaped on to 275.08 points (0.9%) to stall the day at a staggering 29,551.42! The S&P 500 (SPX) rose 21.70 (0.7%) points to end the day at 3,379.45. The COMP or the Nasdaq Composite Index finished at 9,725.96 which is still a gain of 87.02 points or 0.9%.
What is the Driving force behind the market?
In the last 24 hours, 2015 new cases of Corona Virus have been reported to China’s National Health Commission. The numbers reflect a decline in the spread which is positive news for every other investor in the market because China is the second-largest contributor to the stock market. The growth is directly related to the decline in this contagion!
Some experts are of the view that the impact of the COVID-19 on the economy is uncertain and it can cause disruption at any point. Maybe now people aren’t really worried and are assured of the slowdown which is the driving point of these stocks. However, in the future run, the long term impacts may be visible on the market. While everyone else seems to agree with the data offered by the Chinese government regarding the Corona Virus, some experts seem to doubt the same. If the market is based on any manipulated numbers from a government, the rise of these stocks is only for a limited period before the virus outbreaks in a massive form.
There are numerous schools of thought behind this but the reality remains that the virus is being well dealt with and the count is truly coming down with every passing day.
Update on the other markets
The oil market has ended on a higher note as well. A barrel of West Texas Intermediate crude oil planned for March delivery rose by 2.5% to $51.17 according to the New York Mercantile exchange.
Amongst precious metals, gold slated for April delivery (GCJ20), got rid of the losses early in the day and ended with a 0.1% gain on the day end. In the Asian overnight, the China CSI 300 rose by a respectable 0.8% whereas the Hang Seng Index (HSI) went up by 0.9% with 27,823.66 points.