Stimulus Measures Will Be Equity Tailwinds

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as stimulus measures will be equity tailwinds. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow jumps more than 2%, posts first back-to-back gain since February

The Dow Jones Industrial Average jumped more than 13% in two days as a coronavirus stimulus deal was passed by Congress. Positive comments from New York Gov. Andrew Cuomo and a former Federal Reserve chief also lifted equities. The 30-stock average climbed more than 2%, or 495.64 points, to 21,200.55 on Wednesday.

The S&P 500 (SPY) rose +1.15% today. Sector advancers led decliners 8 to 3 as shown below in the sector graph. Sector advancers ranged from +5.26% to +1.33%, check the sector graph for specifics. Communication services (XLC) lost -1.54%. Consumer staples (XLP) and technology (XLK) suffered minor losses of less than 1%.

The Dow Jones index added +495 points (+2.39%) to close at 21,200. The Nasdaq lost -33 points (-0.45%) to close at 7,384.

Stimulus Measures Will Be Equity Tailwinds

Stocks ended mixed Wednesday as White House and congressional leaders hammer out details of a massive stimulus package to combat the coronavirus blow to the economy.

“The stimulus measures will continue acting as equity tailwinds as they seep into corners of the credit market presently locked,” said Adam Crisafulli, founder of Vital Knowledge, in a note. But the market “is clearly moving much faster than underlying fundamentals and just as sharp declines on prior sessions exaggerated economic conditions, the rebounds will too.”

White House and Senate leaders agreed to a massive $2 trillion coronavirus stimulus bill in the middle of the night.

“At last we have a deal,” Republican Senate Majority Leader Mitch McConnell said around 1:37 a.m. ET from the floor of the Senate. “In effect, this is a war-time level of investment into our nation.”

Former Federal Reserve Chairman Ben Bernanke also said Wednesday the U.S. economy will experience a quick rebound after a “very sharp” recession. “If there’s not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound,” Bernanke told CNBC’s “Squawk Box.” Bernanke added the current situation is “much closer to a major snowstorm” than the Great Depression.

He also acknowledged current Fed Chairman Jerome Powell moved quickly to stem the economic blow from the outbreak. “I think the Fed has been extremely proactive, and Jay Powell and his team have been working really hard and gotten ahead of this and shown they can set up a whole bunch of diverse programs that will help us keep the economy functioning during this shutdown period.”

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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3/25/20

S&P 500 Sector Graph

Stimulus Measures Will Be Equity Tailwinds

S&P 500 (SPY)

Stimulus Measures Will Be Equity Tailwinds

Communication Services (XLC)

Stimulus Measures Will Be Equity Tailwinds

Consumer Discretionary (XLY)

Stimulus Measures Will Be Equity Tailwinds

Consumer Staples (XLP)

Stimulus Measures Will Be Equity Tailwinds

Energy (XLE)

Stimulus Measures Will Be Equity Tailwinds

Financials (XLF)

Stimulus Measures Will Be Equity Tailwinds

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Real Estate (XLRE)

Stimulus Measures Will Be Equity Tailwinds

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

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Utilities (XLU)

S&P 500 Sector Heat Map

 

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