Wall Street's three major indexes settled on a high note Monday with the highest profits in technology stocks as investors concentrated on the prospects for more government bailout measures, even as they were concerned about a rise in coronavirus cases in the US and elsewhere.
Nasdaq hit its fourth record close with the biggest performances from Microsoft, Apple, and Amazon.com this month. The World Health Organization announced a historic increase on Sunday in global cases of coronavirus, boosting demand for safe haven assets such as gold and the long-term US Treasury.
Travel and leisure stocks, including air and cruise lines, stretched their late trading declines as virus cases continued to grow in some geographies, raising concerns that reopening processes would worsen the situation.
The Dow Jones Industrial rallied 154 points, to settle at 26,024.96, after opening the trade down almost 202 points, while the S&P 500 was up 20.12 points, to end at 3,118, off its intraday low of 3,079.2.
Texas hospitalizations rose by a record based on Monday's counts, and Governor Greg Abbott said the outbreak was growing at an unacceptable rate and warned he would tighten restrictions on social distancing if the outbreak escalates further. In Florida, overall cases rose again to top 100,000 on Monday.
The strength from Wall Street came as traders continued to show hope the US economy would rapidly rebound from the setback caused by coronavirus. Recent data on retail sales and employment far exceeded expectations, helping to reinforce optimism of a V-Shaped recovery, even as many economists urge caution.
US stocks reported gains, before briefly withdrawing late in the day, amid several reports that US President Donald Trump plans to ink an executive order Monday to immediately prohibit H-1B visa employees and others from coming to the country in the midst of the pandemic. The policy is also expected to extend a moratorium on granting green cards to new immigrants by January, according to an NPR report.
Looking ahead, the US central bank will release the results of its so-called yearly stress tests on the country's biggest lenders next Thursday. The Federal Reserve has initiated such tests on the most prominent banks annually since 2009 and this year is especially significant in the midst of the ongoing crisis.
Meanwhile, the World Health Organization reported that over 183,000 new coronavirus cases were tallied worldwide late Sunday, the biggest single-day spike since the outbreak started.
Brazil has emerged as a major virus hotspot in the past weeks and led the surge in infections with 54,771 new cases. The US is next with 36,617 new infections as states in the South, West, and Midwest witness increases in new infections after the recent reopening.
