DOW JONES SURGES AS INVESTORS OVERLOOK MARKIT PMI, FOCUS ON CORONAVIRUS STIMULUS BILL & FED
- The Dow Jones, S&P 500 Index soar as Tuesday’s trading session gets underway
- US Markit PMI data for March dropped at its fastest rate in over a decade as coronavirus fallout takes its toll on the economy
- Stock market investors remain focused on fiscal stimulus efforts and recent FOMC action
Stocks surged at the New York opening bell on Tuesday with the Dow Jones Industrial Average, S&P 500 Index and Nasdaq jumping 6.3%, 5.1% and 5.0% respectively. Investors have grown increasingly hopeful that US Congress will ink a coronavirus stimulus bill to offset economic impact from the global pandemic. This follows news from the Federal Reserve yesterday detailing unlimited QE as the central bank steps in to provide massive amounts of liquidity to shore up panic-stuck markets.
DOW JONES INDEX PRICE CHART: 1-MINUTE TIME FRAME (24 MARCH 2020 INTRADAY)
Chart created by @RichDvorakFX with TradingView
Stocks remain about 30% off all-time highs recorded last month, however, as the novel coronavirus (COVID-19) wreaks havoc on the global economy. Economic data is just starting to trickle in detailing how gloomy coronavirus fallout has been.
On that note, the IHS Markit PMI reading for March just crossed the wires, which revealed the flash composite output index crashed to 40.5 – a new series low. The services business activity index plunged to 39.1, also a new series low, while the manufacturing PMI fell to 49.2, a 127-month low. According to commentary from Chris Williamson, IHS Markit Chief Business Economist, the flash PMI data “underscores how the US is likely already in a recession that will inevitably deepen further.”
Read More: Gold Price to Resume Ascent as Fed Asset Purchases Balloon
-- Written by Rich Dvorak, Junior Analyst for DailyFX.com
Connect with @RichDvorakFX on Twitter for real-time market insight
