Day Traders Diary
The major averages surge again following coordinated rate cuts around the globe and major victories from former Vice President Joe Biden during Super Tuesday. The Dow Jones Industrial Average soared 1,173.45 points higher, or 4.5%, to 27,090. The S&P 500 jumped 4.2% to 3,130 while the Nasdaq Composite advanced 3.8% to 9,018. The Dow posted its second-highest point gain ever, and it was the second time in three days that the 30-stock average swung 1,000 points or higher.
With Wednesday's rally, all three major averages moved out of correction territory, meaning they are now less than 10% down from their 52-week highs. The tech-heavy Nasdaq also turned positive on the year, up 0.5% in 2020.
All eleven sectors finished with gains of 2.0% or more while six groups added more than 4.0%. While the rally produced big gains, there was a defensive quality to it. The health care sector held the lead throughout the day as Joe Biden seized the delegate count lead from Bernie Sanders, who favors nationalizing the health insurance industry.
Health care was followed by higher yielding groups like utilities and consumer staples while the top-weighted technology sector finished just ahead of the broader market. Chipmakers had a particularly strong showing, as the PHLX Semiconductor Index jumped 4.9% with all 30 components ending in the green.
Once again, the Treasury market did not share the optimism of the stock market, though midday action saw Treasuries back down from their highs as equities rallied to best levels of the day. The long bond recorded a slight loss, lifting its yield by a basis point to 1.64%, while the 10-yr note and shorter tenors finished in the green. The 10-yr yield slipped another two basis points to 0.99% while the 2-yr yield fell nine basis points to 0.63%.All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.