US stocks rebounded Monday as Wall Street cautiously bet on an economic recovery despite mounting unrest over police brutality and continued tensions with China.
The Dow Jones industrial average rose as much as 93.12 points, or 0.3 percent, to 25,476.23, after shedding 0.5 percent at the open.
The S&P 500 and the Nasdaq similarly clawed back early losses in choppy trading to rise as much as 0.2 and 0.5 percent, respectively.
Wall Street appeared focused on the prospects of the economy shaking off the coronavirus crisis despite a weekend of violent protests across the nation sparked by the police killing of George Floyd in Minneapolis.
“History shows effectively no correlation between social, political turmoil and stock markets,” said David Trainer, CEO of investment research firm New Constructs. He noted that the market posted a significant gain in 1968, a year marred by civil unrest and two major political assassinations.
Investors also shrugged off China’s Monday threat of retaliation against President Trump’s move to start ending the US’s special trade relationship with Hong Kong after Beijing moved to restrict the territory’s autonomy.
The protests and China tensions “just get dwarfed by the fact that the economy everywhere is coming back online, and I just don’t know how the market moves away from that,” said Jim Paulsen, chief investment strategist at the Minneapolis-based Leuthold Group.
Some recent economic data has suggested that the US economy is starting to turn around after the coronavirus pandemic sparked the worst downturn since the Great Depression.
Reports released Monday showed manufacturing activity improving last month in both the US and China as the world emerged from lockdowns aimed at controlling the virus. New jobless claims in the US have also fallen steadily in recent weeks, though Friday’s monthly jobs report is expected to show unemployment at or near 20 percent.
Optimism about an economic reopening has helped spur a significant rally on Wall Street since March, when the virus crisis tanked global markets. The S&P ended May just about 10.3 percent below its all-time high reached in February.
With Post wires
Source: Read Full Article