Wall Street jumps 3.4%, holds on this time

NEW YORK » Stocks shot to a 3.4% gain on Wall Street Wednesday as investors chose to focus on the optimistic side of data about the coronavirus outbreak’s trajectory.

It’s the latest about-face in this brutally volatile stretch for the U.S. stock market, which has flipflopped from gains to losses for six straight days. Just a day before, stocks had been headed for a similar gain only for it to disappear in the last minutes of trading.

The market’s upward swings have recently been bigger than the down moves, though, amid signs that deaths and infections may be nearing a peak or plateau in some of the world’s hardest-hit areas. Some investors are envisioning the other side of the economic shutdown that is gripping the world as authorities try to slow the spread of the virus. The S&P 500 has jumped nearly 23% since hitting a low two and a half weeks ago, building on earlier gains driven by massive amounts of aid promised by governments and central banks for the economy and markets.

Many analysts say they’re skeptical of the rally given how much uncertainty still remains. The death toll continues to rise, millions of people are still losing their jobs by the week and the economic pain is worldwide. France’s central bank said its economy entered a recession with a 6% drop in the first three months of the year.

But optimism rose in the market Wednesday after Dr. Anthony Fauci, the top U.S. infectious diseases expert, said the White House is working on plans to eventually reopen the country. President Donald Trump later said it “will be sooner rather than later.”

“It’s positive that people are talking about reopening the economy,” said Jeff Buchbinder, equity strategist for LPL Financial. “The White House has been talking about that. The more we can focus on what the economy will look like several months out, the better it will be for markets.”

The S&P 500 climbed 90.57 points, or 3.4%, to 2,749.98. It closed roughly where it was about 30 hours earlier. The S&P 500 had been heading for an even bigger gain on Tuesday, but a 3.5% rise suddenly vanished in the afternoon.