Key indexes added almost 4% on Monday.
US stock indexes rose almost 4% on Monday after US President Donald Trump expressed hope that the crisis around the coronavirus in some of the most affected States is beginning to “smooth out”.
New York, which has become one of the epicenters of the epidemic, on Sunday, reported that the number of deaths from the virus in the state for the first time in a week slightly decreased compared to the previous day.
The rise in the number of fatalities in France and Italy also slowed, and Wall Street’s “fear indicator” fell to its lowest level in two weeks.
“This still seems to be a sign of excessive optimism,” said analyst Marios Hadzikiriakos. “While traders are calm, will they remain calm in the coming weeks, when consumption will collapse, unemployment will jump, and forecasts for company earnings will fall sharply?”
On Friday, key wall street indexes lost more than 1.5% on the back of a jump in unemployment: data was released on Thursday showing that the number of applications for unemployment benefits reached a record 6.5 million in the previous week.
Boeing on Sunday said it was extending the suspension of production at facilities in Washington State and will stop paying salaries to about 30,000 employees starting this week.
Shares of the company, which have lost more than 60% this year, rose 4% in the run-up to the opening of trading.
The key S&P500 index has lost more than $ 7 trillion from its market value since mid-February.
Earnings for S&P500 companies are expected to fall significantly in the second quarter, amid declining demand in many industries.
Shares of Delta Airlines lost more than 5% in the run-up to the opening of trading, while Warren Buffett’s Berkshire Hathaway Corporation reduced its stake in the company, and Citigroup and JPMorgan lowered their price targets for the shares.
Shares of American Airlines, United Airlines, and JetBlue lost between 1.7 and 2.9%.
Among the Dow components, the position of Goldman Sachs rose markedly – by 4.3%.
As of 07.50 am, the e-mini Dow was up 770 points or 3.67%, the e-mini S&P 500 was up 92.5 points or 3.73%, and the e-mini Nasdaq 100 was up 283.25 points or 3.77%.