- The Dow Jones kicked off the week with an aggressive rally.
- Stock market bulls cheered the flattening of the coronavirus infection rate curve in Italy.
- Unfortunately, U.S. cases of COVID-19 surpassed 150,000 overnight.
The Dow Jones Industrial Average (DJIA) clawed out an aggressive rally on Monday after Italy turned a corner in its battle with the coronavirus pandemic.
Supporting the rally was the U.S. biotech machine, and both Dow giant Johnson & Johnson and Abbot Labs fed the stock market positive COVID-19 headlines.
Those optimistic developments are crucial to this recovery. U.S. cases of COVID-19 exceed 150,000, and the rapid pace of the spread is certainly enough to give stock market bulls pause.
Dow Jones Rallies as Europe’s Coronavirus Fight Brightens
All three of the major U.S. stock market indices bounced on Monday, even as core stocks like Boeing endured steep declines.
- The Dow rose 607.05 points or 2.81% to 22,243.83.
- The S&P 500 jumped 3.08% to 2,619.68.
- The Nasdaq rallied 3.41% to 7,758.33.
In the commodity sector, the price of oil suffered another grisly session. U.S. crude slid 6.5% into the $20 handle and dipped as low as $19.27.
Pressured by a resurgent U.S. dollar and a rising stock market, gold dropped 1.3% in response to risk-on conditions.
While there wasn’t much on the economic data front, pending home sales were very strong in the United States in February, rallying 2.4% against expectations of a 1% decrease.
Unfortunately, the future does not look so bright for activity in the housing market, given that next month’s data will likely suffer the full brunt of the coronavirus impact.
Surging past 153,000 overnight, confirmed U.S. cases of COVID-19 far exceed any other nation in the world.
The good news is that Italy, the country with the most coronavirus-related fatalities, saw its lowest intake of new cases in two…