The stock market opened slightly higher on Wednesday after the Treasury Department announced that it will issue a new 20-year bond to help finance government debt during the coronavirus pandemic.
The market is aiming for a third day of gains in a row.
The Dow Jones Industrial Average was up 0.5%, around 125 points higher, on Tuesday, while the S&P 500 rose 0.7% and the Nasdaq Composite gained 1.1%.
Stocks continued to rise amid increasing optimism on Wall Street over several states—including Georgia, Florida, Texas and California—beginning to reopen businesses and lift coronavirus lockdowns.
President Trump acknowledged in an interview with ABC on Tuesday that reopening parts of the U.S. economy would inevitably cost lives, but also argued that the benefits of reopening outweigh the costs.
The Treasury Department, for the first time since 1986, will launch a new 20-year bond in an effort to help fund the record level of borrowing the government will need to do to help shore up the economy amid coronavirus.
Investors also brushed off more dismal economic data: ADP and Moody’s Analytics data shows private payrolls dropped by 20.2 million in April, the worst monthly job loss in the history of that report.
Shares of several companies rose on Wednesday after beating earnings: CVS Health saw its stock jump over 3%, while General Motors rose by more than 8%. Disney’s stock fell almost 2% after missing earnings on Tuesday.
Four themes have been propelling the market’s rally in recent weeks: “reopening,” “positive linearity,” “drug/vaccine progress” and “stimulus,” according to Vital Knowledge founder Adam Crisafulli. He warns that these market drivers are “growing quite stale by now,” and for the market to make sustained gains higher, “fresh catalysts” will need to emerge.
What to watch for
The Labor Department’s April monthly jobs report will be released Friday: The unemployment rate is expected to rise from 4.4% to 16.1%, the highest level since 1939, according to Dow Jones.