Closing: Biden's victory encouraged the Dow to soar 1170 points

SMM News: Beijing time in the early morning of the 5th, U. S. stocks closed sharply higher on Wednesday. The main stock index rose strongly in late trading, with the Dow soaring 1173 points to return to the 27000 mark, recording a gain of more than 1100 points for the second time this week. The Federal Reserve cut interest rates to rescue the market yesterday, and Democratic candidate Joe Biden won a big victory in the presidential primary, boosting market confidence. The Federal Reserve Brown Book believes that the coronavirus epidemic has affected the U. S. economy. The U.S. House of Representatives has passed a $8.3 billion appropriation bill to help fight the new crown virus epidemic.

The Dow closed up 1173.45 points, or 4.53%, at 27090.86; the Nasdaq rose 334.00 points, or 3.85%, to 9018.09; and the S & P 500 rose 126.75 points, or 4.22%, to 3130.12.

Pharmaceuticals led the rally, with Dow United Health up 10.72%, Pfizer up 6.12%, Johnson & Johnson up 5.82% and Walgreen United Boots up 5.57%.

Other Dow stocks also rose, with American Express jumping 7.12% and Minnesota Mining Manufacturing up 6.02%. Home Depot, Procter & Gamble and Coca-Cola all rose more than 5%. United Technologies closed up 4.9%, and Apple closed 4.7% higher.

Most of the hot Chinese stocks rose, with Alibaba up 2.19%, Jingdong up 5.91%, Baidu up 2.92%, Weibo up 2.53%, Pido up 1.4%, and NetEase up 5.39%.

Biden's victory inspired the U. S. stock market, why is Wall Street afraid of Sanders?

Some analysts attribute the rally in US stocks today and the rebound in Treasury yields from Tuesday's all-time low to a major victory for Democratic candidate and former Vice President Joe Biden during the presidential primaries.

Jeff DeGraff, an analyst at Renaissance Macro Research, wrote in a research note on Wednesday: "what if the real culprit behind the recent market slump is that a marginal candidate (implied to Sanders) has improved his prospects for winning the Democratic nomination and is one step closer to winning the White House?"

Democratic candidate and former Vice President Joe Biden became the big winner in the primary on Super Tuesday, winning votes in nine of the 14 states, including the second-largest vote in Texas.

With a total of 3979 votes in the Democratic primary, winning more than half (1991) of the votes will win the primary. On Super Tuesday, 14 states voted on the same day, with a total of 1375 votes, including California and Texas, which had the largest number of votes. Historically, whoever wins Super Tuesday has basically won the primaries.

The market believes that Biden's string of victories have undermined the momentum of Bernie Sanders (Bernie Sanders), who is seen by Wall Street as a candidate who is extremely disadvantageous to the market. If Sanders ends up in the White House, Wall Street will have its worst political nightmare, CNN said.

The market believes that if Sanders is elected president of the United States, he will bring more potential uncertainty to the U. S. economic system than all other important candidates. Mr Sanders, who claims to be a democratic socialist, has campaigned on political revolutions, banning the use of fracturing to extract oil and gas, breaking up big banks and legislating for a wealth tax.

"Sanders' approach would mean a huge disaster for the market," said Greg Valliere, chief US policy strategist at AGF Investments. Investors saw him with great anxiety in their hearts. "

Hedge fund da Henry Druckenmiller (Stanley Druckenmiller) predicts that if Sanders is elected president, the US stock market is likely to fall 30 to 40 per cent.

Sanders once wrote on Instagram: "now that the billionaire class is scared, they really should be scared. We are ready to be their worst nightmare and firmly support working families in this country. "

As Sanders' number one rival in the Democratic Party, Biden is much milder in policy. Biden supports a carbon tax, but does not intend to ban fracturing; he wants to expand Obamacare, but opposes the idea of universal health care. Biden also wants to raise the corporate tax rate, but does not intend to introduce a wealth tax, as Sanders did.

"I believe the market is perfectly acceptable to Biden because he is a well-known centrist," said David Kotok, chairman and chief investment officer of Cumberland Advisors. "

The Fed Brown Book mentions coronavirus 48 times: the epidemic has affected the U. S. economy

The Federal Reserve released a brown book report on the state of the economy at 2 p.m. eastern time on Wednesday, which talked about the impact of the new crown virus outbreak on the U. S. economy. Coronavirus is mentioned 48 times in the report.

The Brown Book reports that while the US economy has slowed to moderate growth in the past few weeks, there are signs that the escalation of the coronavirus epidemic has begun to affect business sentiment in the United States.

The latest economic survey analyzed most of February. During this period, fears of an escalation of the epidemic and a slowdown in the global economy led to a collapse in financial markets.

"the coronavirus has had a negative impact on travel and tourism in the United States," the report said. The coronavirus has caused delays in some supply chains, and some regions say manufacturers are worried about further disruption in the coming weeks. "

The Fed compiles its findings into a report called the Brown Book, which serves as the basis for economic prospects in the coming months, as business sentiment is often ahead of changes in economic data. The Fed districts report that their short-term prospects are mainly moderate economic growth, while the coronavirus and the upcoming US presidential election are seen as potential risks.

So far, the description of the impact of coronavirus in the brown book has been mixed, reflecting the fact that the economic impact will be greatly affected if the outbreak is not controlled.

Overall, the virus has had little impact on US economic data so far, consumers are still spending and unemployment is close to a 50-year low. The Fed report shows no sign of abating. The report notes that consumer spending and employment have increased as a result of the tight labour market.

The epidemic is spreading rapidly and countries are responding to it urgently.

The market is still watching the global spread of the new crown virus epidemic. The latest figures released by the World Health Organization show that 10566 new confirmed cases of the virus have been reported in other parts of the world outside China, reflecting the grim situation of the spread of the global epidemic.

Georgieva, president of IMF, said the new crown virus outbreak poses a serious threat to the global economy. "Last week, we saw a more adverse shift in the global economy," she said. The IMF will release new global economic forecasts in the coming weeks. "

The Centers for Disease Control and Prevention (CDC) reports that so far, 80 cases have been confirmed and presumed to be positive for the new crown virus. There were 3 new deaths, bringing the total number of deaths to 9. A state of emergency has been declared in Los Angeles after a number of new cases of the virus have been reported.

Germany's health minister said the new crown virus epidemic had become a "global pandemic". As of 20:00 on 4 March, a total of 344 cases of new crown virus had been confirmed in Germany, with an increase of more than 100 cases in one day.

The Italian government has drawn up a draft plan to ban public events and close cinemas and theatres throughout the country as a result of the new crown virus epidemic.

The total number of confirmed cases of new crown virus in Japan has increased to 1022. The cumulative number of confirmed cases of the new crown virus in South Korea has risen to 5621.

The news has not yet been officially confirmed, according to Iranian online media IranWire:, which tested positive for the new crown virus of Iran's first vice president. In addition, the Iranian Ministry of Health reported at noon local time on the 4th that in the past day, Iran has 586 new confirmed cases of coronavirus, a total of 2922 confirmed cases and 92 deaths.

Iranian President Hassan Rouhani admitted at a cabinet meeting on March 4 that there was a new epidemic of the virus in almost all of Iran's 31 provinces. "this is a common disease," Rouhani said. It has spread to almost all of our provinces and, in a sense, is already a global disease that affects many countries in the world. We must work together to solve this problem as soon as possible. "

Agence France-Presse reported that the European Union office in Brussels found the new crown virus case for the first time.

The Bank of Canada cut its benchmark interest rate by 50 basis points to 1.25% on Wednesday for the first time since July 2015. The New Crown virus outbreak has had a significant negative impact on Canada and the global economy, the Bank of Canada said in a statement.

Kuwait's central bank announced that in order to promote economic growth, Kuwait's central bank will cut the discount rate by 25 basis points to 2.5%.

S & P warned that the US economy would grow by less than 1 per cent in the first half of the year as a result of the outbreak.

Jordan's central bank cut its main interest rate by 50 basis points to stimulate the economy.

The Russian government has announced on its website that it will ban the export of some medical supplies from now until June 1, 2020.

Markets were rocked by the Fed's emergency rate cut of 50 basis points on Tuesday. The Fed statement said that while US economic fundamentals remained strong, "the coronavirus poses an evolving risk to economic activity." The yield on 10-year Treasuries fell below 1% for the first time in more than 150 years after the Fed slashed interest rates on Tuesday.

Some investors are taking risks to re-enter the market. Mark Haefele, global chief investment officer at UBS Wealth Management, said: "the size of the market sell-off and the Fed's rapid policy response have inspired us to increase our risk positions recently."

Steve Todd, editor of the famous Todd Market Forecast (Todd Market Forecast), said that in some ways, the US stock market has been oversold, including statistics such as the relative strength index (RSI), which shows that US stocks have reached levels of overselling that have not been seen since 2018.

"have all the questions about the new crown virus been eliminated?" Steve Todd said. Far from it, but on the other hand, the short cartridge has run out of ammunition. "

Economic data

On the economic data front, U. S. companies continued to add jobs in February, with private sector jobs growing faster than Wall Street had expected. A report released Wednesday by Moody's Analytics showed that the number of jobs excluding government jobs rose by 183000 for the month, surpassing economists' expectations of 155000.

In the previous month, there was widespread concern that the spread of the new crown virus would lead to a global economic slowdown. However, the data show that despite concerns and wild swings in the stock market, US companies continue to recruit and the economy remains resilient.

Mark Zandi, chief analyst at Moody's, said in a statement that the new crown virus epidemic "must break through the defensive city of the job market" if it is to cause significant damage to the economy. "there are some cracks in the defensive city, but judging from February's job growth, it should be strong enough to withstand most cases," he said. "

The revised US IHS Markit non-manufacturing activity index for February was 49.4, in line with preliminary data.

The (ISM) Services Index of the Institute for supply Management rose to 57.3 in February; it is expected to be 54.8. Agency reviews of US ISM non-manufacturing PMI: US services activity rose to a one-year high in February, suggesting that the economy still has potential strength despite the outbreak of the new crown virus, which has led to fears of a recession in financial markets and an emergency rate cut by the Federal Reserve.

Focus stock

AT&T, a telecommunications and media company, announced that it would implement another plan to accelerate the buyback of $4 billion of shares from April.

Commercial truck maker Navistar International (NAV) announced an increase in first-quarter losses and said it had received an unsolicited takeover offer during the quarter.

Amazon (AMZN) has received attention. According to a number of media reports, an employee of the company in Seattle has been tested positive for the new crown virus.

GE (GE) expects the new crown virus to have an impact of up to $300m on operating profit in the first quarter.

Other markets

In Asian markets on Wednesday, the Shanghai composite index closed 0.1 per cent higher, while Hong Kong's Hang Seng index closed 0.2 per cent lower. Tokyo's Nikkei 225 index closed 0.3% higher. South Korea's Kospi index closed 2.1 per cent higher. The Sydney S&P/ASX 200 index closed down 1.7 per cent.

In European stocks, the European pan-European performance index closed 1.29% higher, Britain's FTSE 100 index closed 1.3% higher, Germany's DAX index closed up 0.9%, France's CAC index closed 1.2% higher, and Spain's IBEX index closed 1.4% higher.

The yield on the 10-year Treasury note was 0.988%. The yield fell below the 1 per cent mark for the first time in more than 150 years yesterday. The yield on the two-year note was 0.641%. The yield on the 30-year note was 1.628%.

Gold futures for April delivery fell $1.40, or 0.09%, to close at $1643 an ounce on the New York Mercantile Exchange, rising as high as $1654.30. May silver futures rose 5. 8 cents, or 0.3%, to close at $17.246 an ounce.

Crude oil futures for April delivery on the Commodity Exchange fell 40 cents, or nearly 0.9%, to close at $46.78 a barrel. Intraday rose as high as 48.41 / barrel. London May Brent crude, the global benchmark, fell 73 cents, or 1.4%, to $51.13 a barrel.