U.S. Stocks Move Sharply Higher On Positive Reports About Trump’s Health

U.S. Stocks Move Sharply Higher On Positive Reports About Trump’s Health

October 12, 2020

Stocks have moved sharply higher in morning trading on Monday, more than offsetting the weakness seen in the previous session. The major averages have all shown strong moves to the upside on the day.

Currently, the major averages are just off their highs of the session. The Dow is up 336.24 points or 1.2 percent at 28,019.05, the Nasdaq is up 184.17 points or 1.7 percent at 11,259.19 and the S&P 500 is up 42.75 points or 1.3 percent at 3,391.19.

The strength on Wall Street comes amid positive reports about President Donald Trump’s health after he was rushed to Walter Reed hospital on Friday.

In a video posted on Twitter late Sunday, Trump said he is “getting great reports from the doctors” regarding his battle with the coronavirus.

According to a report from NBC News, Trump and the team of doctors treating him will decide later today whether to discharge him from the hospital.

“The discharge decision will be made later today between the president and his medical team,” White House chief of staff Mark Meadows told NBC News.

Optimism about a new stimulus bill has also contributed to the strength on Wall Street, with Trump putting pressure on lawmakers to reach an agreement.

Stocks saw further upside following the release of a report from the Institute for Supply Management showing activity in the U.S. service sector unexpectedly grew at a faster rate in the month of September’

The ISM said its services PMI rose inched up 57.8 in September from 56.9 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 56.3.

Biotechnology stocks have shown a substantial move to the upside on the day, driving the NYSE Arca Biotechnology Index up by 3 percent.

Shares of MyoKardia (MYOK) are sharply higher after the biotechnology company agreed to be acquired by Bristol Myers Squibb (BMY) for $225 per share in cash.

Biotech company Eidos Therapeutics (EIDX) is also seeing significant pre-market strength after BridgeBio (BBIO) agreed to acquire all of the outstanding common stock of Eidos it does not already own.

Considerable strength is also visible among steel stocks, as reflected by the 2.8 percent jump by the NYSE Arca Steel Index.

Gold, computer hardware and semiconductor stocks are also seeing notable strength, moving higher along with most of the other major sectors.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan’s Nikkei 225 Index jumped by 1.2 percent, while Hong Kong’s Hang Seng Index surged up by 1.3 percent.

The major European markets have also moved to the upside on the day. While the German DAX Index is up by 1 percent, the French CAC 40 Index is up by 0.8 percent the U.K.’s FTSE 100 Index is up by 0.7 percent.

In the bond market, treasuries have moved notably lower amid the rally on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 5.8 basis points at 0.754 percent.

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