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US: Stocks finish higher on hopes for rebound

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Wall Street stocks finished higher on Tuesday on continued optimism about steps to reopen the US economy and as oil prices rallied on expectations for a bounce in demand.

[NEW YORK] Wall Street stocks finished higher on Tuesday on continued optimism about steps to reopen the US economy and as oil prices rallied on expectations for a bounce in demand.

The Dow Jones Industrial Average gained 0.6 per cent to end at 23,883.09.

The broad-based S&P 500 climbed 0.9 per cent to close the session at 2,868.44, while the tech-rich Nasdaq Composite Index advanced 1.1 per cent to 8,809.12.

More US states have relaunched their economies or set targets for reopening in recent days, raising hopes for an economic rebound.

US oil futures jumped 20 per cent to US$24.56, the latest gain after an unprecedented plunge into negative territory last month.

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Charles Schwab analysts described the market's mindset as "cautious optimism" over the state reopening announcements, overshadowing weak earnings and economic data.

But Briefing.com analyst Patrick O'Hare said there are "vestiges of a disconnect between the harsh economic reality brought on by the Covid-19 shutdown measures and the stock market's hopeful view that things are only going to keep getting better in the months ahead."

Among individual companies, Starbucks added 1.4 per cent as it moved to reopen most of its US stores.

Norwegian Cruise Line warned its future as a "going concern" was at risk given the hit demand for tips due to the coronavirus.

Travel companies were big losers Tuesday, with Expedia shedding 4.4 per cent, United Airlines 4.5 per cent, and Boeing 4.6 per cent.

AFP

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