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Wall Street rallies to close up, Nasdaq hits all-time high

Wall Street rallies to close up, Nasdaq hits all-time high

The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City. (REUTERS/Carlo Allegri/File Photo)

WASHINGTON, DC: Wall Street indices powered higher on Monday (Jun 8) as investors bet on the economy's continued ability to recover from the coronavirus pandemic, with the Nasdaq reaching a new record close.

The tech-rich index gained 1.13 per cent to finish the session at 9,924.75, 110.67 points above its previous peak in February.

The benchmark Dow Jones Industrial Average gained 461.46 points (1.70 per cent) to close at 27,572.44, while the broad-based S&P 500 rose 38.46 points (1.20 per cent) to 3,232.39, erasing its losses for the year.

It was a dramatic recovery for US stocks following a bruising March that saw indices plunge in value as businesses across the United States shut down to stop the spread of COVID-19.

Investors have been buoyed by state moves to reopen their economies and a return of demand in key sectors.

Maris Ogg, portfolio manager at Tower Bridge Advisor, said markets are "running high on people's expectation that we actually started a new bull cycle, that the economic cycle will have been revitalized by the downturn. It's probably realistic."

Yet Wall Street's newfound health has not been reflected across the US economy at large: the unemployment rate is at 13.3 per cent and non-partisan research organisation National Bureau of Economic Research said on Monday the US economy entered a recession in February.

But between the investors who are holding back in case the recovery falters and trillions of dollars in liquidity from the Federal Reserve, Ogg said markets are primed to increase. "The path of least resistance is still up," she said.

United Airlines gained 14.8 per cent and American Airlines 9.3 per cent after both carriers announced last week they will increase flights amid rising demand for travel.

Carnival Cruise Line rose 15.8 per cent as it moved closer to its restart of limited operations from August.

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