A day after President Trump’ historic State of the Union address, the markets reached new highs.
According to Yahoo Finance:
The S&P closed in record territory Wednesday as investors bet that efforts to contain the outbreak of the coronavirus and support from the central banks will limit its impact on global growth.
The S&P 500 rose 1.13% and the Nasdaq Composite rose 0.43%, both record closes. The Dow Jones Industrial Average gained 1.68%.
The coronavirus outbreak appears to be gathering pace, with the death toll nearing 500, and more than 24,000 infected. But traders appear optimistic that efforts to contain the outbreak will begin to take shape sooner rather later and any potential economic fallout will be stifled by central banks.
That eased worries about the impact on China oil demand, sparking a bid in oil prices that powered energy stocks up 3.7%, marking the sector’s biggest gain since December 2018.
Bloomberg reported the same:
U.S. stocks rallied to an all-time high, while Treasuries slumped on speculation efforts will succeed at minimizing the economic impact from the coronavirus. Crude oil rallied after tumbling into a bear market.
The President’s State of the Union address and the exoneration in the Senate of the unconstitutional impeachment from the House also no doubt impacted the markets as well.
