Wall Street closes higher as Fed soothes recovery worries

Selasa, 16 Juni 2020 | 05:08 WIB
Wall Street closes higher as Fed soothes recovery worries
[ILUSTRASI. Traders wear masks as they work on the floor of the New York Stock Exchange as the outbreak of the coronavirus disease (COVID-19) continues in the Manhattan borough of New York, U.S., May 28, 2020. REUTERS/Lucas Jackson - RC2OXG966WR9/File Photo]
Reporter: Sumber: Reuters | Editor: Hasbi Maulana

KONTAN.CO.ID - NEW YORK, June 15 (Reuters) - Wall Street closed higher on Monday following an announcement by the U.S. Federal Reserve regarding its corporate bond purchasing program that boosted investor confidence, which had been wavering amid a spike in new COVID-19 cases.

All three major U.S. stock indexes reversed losses in afternoon trading, following the Fed's decision to apply an indexing approach to its secondary market corporate credit facility to create a more diversified portfolio.

"No doubt the market liked it: Who doesn't like more cake and ice cream?" said Robert Pavlik, chief investment strategist, senior portfolio manager at SlateStone Wealth LLC in New York.

"It fuels traders to buy individual stocks and take on higher risk because the Fed has backstopped the bond market and kept a tighter lid on interest rates," he added.

A flood of liquidity in the form of fiscal and economic stimulus, along with uneven but steady re-openings of state and local economies, sparked a remarkable rally in the stock market since its late-March trough.

Gains were led by cyclical stocks, with S&P 500 financials enjoying the day's biggest percentage gains.

The S&P 500 Banking index rose 1.6%.

"The banks probably have a bunch of corporate debt on their balance sheets and now there's a buyer for it," Pavlik added. "Someone's going to be buying those bonds because the Fed is telling them it's OK."

But surging new cases of COVID-19 in China, where the pandemic originated, prompted the reintroduction of containment measures, and record hospitalizations in several U.S. states dampened investor risk appetite.

On the flipside, an uptick in China's factory output and a much better-than-expected Empire State manufacturing report gave evidence that the pandemic-hobbled global economy was on the road to recovery.

Earlier, the U.S. Federal Reserve announced it had opened registration for its Main Street Lending program to help businesses weather the storm of mandated lockdowns.

Last week, the central bank provided its first pandemic era outlook, and market participants will be closely following Fed Chair Jerome Powell's testimony this week before Congress for details on the central bank's somber economic projections.

The Dow Jones Industrial Average rose 157.62 points, or 0.62%, to 25,763.16, the S&P 500 gained 25.28 points, or 0.83%, to 3,066.59 and the Nasdaq Composite added 137.22 points, or 1.43%, to 9,726.02.

All 11 major sectors of the S&P 500 closed in the black, led by financials and consumer staples.

Drugmaker Moderna Inc gained 7.4% following a report that Israel is in advanced talks to buy its coronavirus vaccine.

Advancing issues outnumbered declining ones on the NYSE by a 1.97-to-1 ratio; on Nasdaq, a 2.69-to-1 ratio favored advancers.

The S&P 500 posted no new 52-week highs and no new lows; the Nasdaq Composite recorded 46 new highs and 10 new lows.

Volume on U.S. exchanges was 12.31 billion shares, compared with the 12.94 billion average over the last 20 trading days.

(Reporting by Stephen Culp; Editing by Cynthia Osterman)

Bagikan

Berita Terbaru

Kejayaan Jati dan Bisnis Furnitur yang Terancam Babak Belur
| Minggu, 06 Juli 2025 | 05:39 WIB

Kejayaan Jati dan Bisnis Furnitur yang Terancam Babak Belur

Ancaman tarif resiprokal ke Amerika Serikat, hingga banjir produk furnitur impor, menjadi tantangan industri.

Melaba dari Usaha Minuman Matcha
| Minggu, 06 Juli 2025 | 05:34 WIB

Melaba dari Usaha Minuman Matcha

Belakangan, olahan matcha digemari masyarakat. Peluang ini ditangkap pelaku usaha yang menuai omzet hingga ratusan juta

PR Perlindungan Investor
| Minggu, 06 Juli 2025 | 05:31 WIB

PR Perlindungan Investor

Nyoman terkejut karena dia merasa cuma mengorder 9 lot, namun mengapa bisa berubah menjadi 16.541 lot?

IHSG Turun 0,47% Sepekan, Intip Saham-Saham Top Gainers dan Top Losers Bursa
| Minggu, 06 Juli 2025 | 04:00 WIB

IHSG Turun 0,47% Sepekan, Intip Saham-Saham Top Gainers dan Top Losers Bursa

IHSG ditutup melemah ke 6.865,19 pada perdagangan terakhir, 4 Juli 2025 setelah melemah 0,47% dalam sepekan mulai 30 Juni 2025.

Akuisisi Tahap Pertama KRYA Terlaksana, Investor Asal Hongkong Lanjut Due Dilligence
| Sabtu, 05 Juli 2025 | 18:00 WIB

Akuisisi Tahap Pertama KRYA Terlaksana, Investor Asal Hongkong Lanjut Due Dilligence

Akuisisi PT Bangun Karya Perkasa Jaya Tbk (KRYA) oleh sejumlah perusahaan yang bergerak di bisnis kendaraan listrik mulai terlaksana.

Sentimen Harga Emas dan Infrastruktur Pabrik Bawa Kinerja BRMS Melonjak
| Sabtu, 05 Juli 2025 | 17:17 WIB

Sentimen Harga Emas dan Infrastruktur Pabrik Bawa Kinerja BRMS Melonjak

Kinerja emiten tambang PT Bumi Resources Minerals Tbk (BRMS) diprediksi semakin cemerlang hingga 2027 mendatang.

Sejumlah Emiten Diuntungkan Melalui Deregulasi Kebijakan Impor
| Sabtu, 05 Juli 2025 | 17:01 WIB

Sejumlah Emiten Diuntungkan Melalui Deregulasi Kebijakan Impor

Kebijakan deregulasi impor memberi ruang memperlancar rantai pasok bahan baku, komponen produksi, hingga barang konsumsi tertentu.

Menilik Peluang dan Risiko Penguatan Rupiah di Semester II 2025
| Sabtu, 05 Juli 2025 | 16:41 WIB

Menilik Peluang dan Risiko Penguatan Rupiah di Semester II 2025

Tantangan terhadap rupiah juga cukup besar dengan data PMI yang terkontraksi dan proyeksi defisit anggaran yang lebih tinggi menjadi 2,78%.

Volume Batubara dan Curah Hujan Tinggi, Kinerja UNTR Diproyeksi Turun
| Sabtu, 05 Juli 2025 | 16:25 WIB

Volume Batubara dan Curah Hujan Tinggi, Kinerja UNTR Diproyeksi Turun

Tekanan harga batubara berasal dari akumulasi turunnya permintaan impor dari China sebanyak 5% year on year (YoY).

Menebak Motivasi Haji Isam di Hulu Ternak Ayam dari Pembelian Anak Usaha KFC (FAST)
| Sabtu, 05 Juli 2025 | 15:05 WIB

Menebak Motivasi Haji Isam di Hulu Ternak Ayam dari Pembelian Anak Usaha KFC (FAST)

Pernyataan mengenai percepatan pelaksanaan proyek-proyek strategis, di dalam tujuan transaksi 15% saham FAST, memancing sas sis sus di pasar saham

INDEKS BERITA

Terpopuler