(Reuters) - Wall Street’s main indexes surged and the Nasdaq hit its highest level in three months on Wednesday as investors clung to hopes of a recovery from a coronavirus-fueled slump amid signs of more stimulus for ailing sectors.
The tech-heavy index, now about 5% below its all-time high hit in February, was boosted by Facebook Inc and Amazon.com Inc, which were trading at record levels, as well as Apple Inc.
The S&P 500 was about 12% below its all-time peak and the Dow Jones index was short by 17%.
“It relates to the reopening of the economy... some states are further along than others, but it’s giving a little bit of confidence to the markets,” said Robert Pavlik, senior portfolio manager at Slatestone Wealth Llc in New York.
“If we can break through the 3,000 level (on the S&P 500) with some conviction, that’s going to be a positive sign, and it’s probably going to draw more money off the sidelines.”
The three indexes have rallied more than 30% from March lows on unprecedented stimulus, but gains have been capped this month as traders digest mixed headlines on progress in developing a coronavirus vaccine.
Moderna Inc’s Chief Executive Officer said a best-case scenario would see them filing for an approval for their potential COVID-19 vaccine by end 2020 or early 2021, days after announcing promising data from a very small early-stage trial.
Meanwhile, U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chair Jerome Powell have said the government and the central bank were considering more steps to
