By Yasin Ebrahim
Investing.com – The Dow rallied toward its highs of the day Monday, paced by strong gains in energy and financials as investors continued to assess efforts by governments worldwide to contain the Covid-19 outbreak.
The rose 3.26%, or 739 points, just below its session highs of 937 points. The gained 2.77% and the added 2.14%.
For the second day in a row, investors are cheering signs that restrictive measures, including social distancing, have been effective in slowing the pace of coronavirus infections.
Underscoring a fall in the rate of hospitalizations, New York Governor Andrew Cuomo said the state was still indicating that the spread of the virus was plateauing, even as the state reported its biggest increase in deaths of 731 overnight.
Cuomo said, however, that death was a lagging indicator in the fight against the virus. He also pointed to a significant drop in patients admitted to intensive care units.
Sentiment on stocks was also helped by reports that Congress is looking to beef up its $349 billion small business loan package by a further $200 billion.
Senate Majority Leader Mitch McConnell said he hopes to approve further funding for the small business loan program this Thursday, CNBC reported.
The broader market rally was led by a surge in energy, with Exxon Mobil (NYSE:) cutting its capital spending plans by 30%, but pledging to maintain its dividend, sending its stock more than 5% higher.
Financials, mostly banks, were also among the biggest gainers on the day as Treasury yields climbed higher.
JPMorgan (NYSE:) rallied 5%. while Goldman Sachs (NYSE:) and Bank of America (NYSE:) were both 6% higher.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.