Dow Surges 200 Points to Close Out Best Quarter Since 1987
On Tuesday, stocks saw significant gains as Wall Street capped off its best quarter in decades, according to CNBC.
The Dow Jones Industrial Average gained 217.08 points, or 0.9 percent, and closed at 25,812.88. The S&P 500 gained 1.5 percent and closed at 3,100.29. The Nasdaq Composite gained 1.9 percent and closed at 10,058.77. The major indexes surged and hit session highs in the last hour of trading.
The Dow raked in 17.8 percent gains in the second quarter, the index's biggest quarterly gain since the first quarter of 1987 when it surged 21.6 percent. The S&P 500 gained nearly 20 percent in the second quarter, its best since the fourth quarter of 1998. The Nasdaq composite gained 30.6 percent for the quarter, its best quarter since 1999.
“A combination of 1) Stimulus, 2) Positive trends in the virus, 3) Economic reopenings and 4) Hopes for a vaccine drove stocks higher in Q2,” wrote Tom Essaye, founder of The Sevens Report. “As we begin Q3, only one of those tailwinds is currently in place: Stimulus. That doesn’t mean we’ll see a correction, but be suspect of market rallies until we can add more forces supporting stocks, because we’re one stimulus disappointment away from an ugly day.”
Shares of Facebook and Amazon each gained 2.9 percent on Tuesday. Lululemon gained 6 percent after news broke that the company was acquiring at-home fitness company Mirror for $500 million. The month of June was the third consecutive monthly gain for the major indices, but weren't nearly as significant as previous months. The Dow gained 1.7 percent in June, the S&P 500 gained 1.8 percent, and the Nasdaq gained 6 percent.
“It’s difficult to see the market continue the way it has been throughout the summer,” said Quincy Krosby, chief market strategist at Prudential Financial. She noted the market could become increasingly volatile if the number of coronavirus cases keeps rising and if some of the proposed virus treatments and vaccine fail. “That’s not only going to impact the biotechnology companies, but the broader market as well.”