Stocks climb again this morning as investors mull how much further to take this rally
Wall Street’s main indexes opened higher on Monday,
building on last week’s rally after a surprise rebound in jobs bolstered views that the U.S. economy has weathered the worst of the economic fallout from the COVID-19 pandemic.
The Dow Jones Industrial Average rose 121.95 points, or 0.45 per cent, at the open to 27,232.93.
The S&P 500 opened higher by 5.99 points, or 0.19 per cent, at 3,199.92. The Nasdaq Composite gained 9.36 points, or 0.10 per cent, to 9,823.44 at the opening bell. The TSX was up 99 points at 15,950.
After a surprisingly good U.S. jobs report on Friday, risk assets are reflecting strong optimism in the economic rebound and the S&P 500 is close to wiping out
its losses for the year. Investor focus will now turn to the Federal Reserve’s upcoming policy meeting, and whether officials will re-commit to using their full range of tools to support the American economy during the pandemic.
“Markets have responded positively to falling infection rates in the major economies, and signs of increased consumption as countries emerge from lockdown,
” Gavekal Research analysts wrote in a weekend note. “But by buying at present valuations, investors appear to be pricing in a perfect Keynesian recovery in the second half of the year.”
