Please ensure Javascript is enabled for purposes of website accessibility

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

6 hours ago

Trump Vowed to Dismantle MS-13. His Deal With Bukele Threatens That Effort.

9 hours ago

Ukraine Voices Concern as US Halts Some Missile Shipments

10 hours ago

Poll: Most Americans Say National Divide, Political Violence Threaten Democracy

10 hours ago

Paramount Settles With Trump Over ‘60 Minutes’ Interview for $16 Million

10 hours ago

Republicans Tee up House Vote on Trump Bill, Outcome Uncertain

10 hours ago

What’s Next for Sean ‘Diddy’ Combs After His Sex Trafficking Trial?

10 hours ago

Dalai Lama Says He Will Be Reincarnated, Trust Will Identify Successor

11 hours ago
Stocks Close Out Best Quarter Since 1998 with More Gains
gvw_ap_news
By Associated Press
Published 5 years ago on
June 30, 2020

Share

Wall Street capped its best quarter since 1998 Tuesday with more gains, a fitting end to a stunning three months for investors as the market screamed back toward its record heights after a torrid plunge.
The S&P 500 climbed 1.5%, bringing its gain for the quarter to nearly 20%. That rebound followed a 20% drop in the first three months of the year, the market’s worst quarter since the 2008 financial crisis. The plunge came as the coronavirus pandemic ground the economy to a halt and millions of people lost their jobs.
“It’s the first time you’ve had back-to-back (quarters) like this since the 1930s,” said Willie Delwiche, investment strategist at Baird. “It’s pretty unprecedented.”

Gains Ignited by Aid from Federal Reserve and Congress

The whiplash that ripped through markets in the second quarter came as investors looked beyond dire unemployment numbers and became increasingly hopeful that the economy can pull out of its severe, sudden recession relatively quickly. The hopes looked prescient after reports during the quarter showed that employers resumed hiring again and retail sales rebounded as governments relaxed lockdown orders meant to slow the spread of the coronavirus.
The quarter’s gains were ignited by promises of massive amounts of aid from the Federal Reserve and Congress. Low interest rates generally push investors toward stocks and away from the low payments made by bonds, and the Federal Reserve has pinned short-term interest rates at their record low of nearly zero.
But most of Wall Street says not to expect anything close to a repeat of the rocking second quarter. A rise in infections has several states pausing their lifting of restrictions. The surge in confirmed new cases, which has prompted the European Union to bar U.S. travelers from entry, is seeding doubts that the economic recovery can happen as quickly as markets had forecast. That helps explain why the market’s momentum cooled somewhat in June.
On Tuesday Dr. Anthony Fauci, the nation’s top infectious-disease expert, warned that the number of daily new reported infections could surge to 100,000 if Americans don’t start following public health recommendations.

Election Could Upset Markets

Beyond the coronavirus, analysts also point to the upcoming U.S. elections and other risks that could upset markets. If Democrats sweep Congress and the White House, which many investors see as at least possible, it could mean higher tax rates, which could weaken corporate profits.
The S&P 500 gained 47.05 points to 3,100.29 on Tuesday. The Dow Jones Industrial Average rose 217.08 points, or 0.9%, to 25,812.88. It had briefly been down 120 points. The Nasdaq composite climbed 184.61 points, or 1.9%, to 10,058.77.
The S&P 500 has rallied back to within nearly 8.4% of its record set in February, after being down nearly 34% in late March. At one point earlier this month, it had climbed as close as 4.5%.
Technology, health care and financial companies powered much of the market’s broad gains Friday. The buying accelerated after a report showed stronger-than-expected improvement in consumer confidence this month.
“Broadly speaking, the market is reacting to economic data that is better than expected,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management.
Schutte said the market is being supported by the likelihood that there won’t be a nationwide shutdown again, aggressive monetary policy and hopes for a vaccine sooner rather than later. “The path of least resistance is still two steps forward, one step back,” he said.

Steady Gains in Tech Stocks and Consumer Categories

The quarter featured steady gains in technology stocks, which climbed 27.6%, second only to the consumer discretionary sector’s 30.2% gain. And airlines and cruise operators traded wildly after being battered for much of the first quarter.
Apple, once again the most valuable company in the S&P 500, gained 43.5% for the second quarter, American Airlines climbed 7.2% for the quarter, while Royal Caribbean Cruises vaulted 56.4%. Still, they each remain down nearly 60% for the year.
Crude oil had a similar rebound as stocks through the second quarter, though it’s still well below where it was before the pandemic struck. Energy companies mounted a solid comeback, with three of them — Apache, Halliburton and Marathon Oil — showing the biggest percentage gains in the S&P 500 for the quarter.
A barrel of U.S. crude oil slid 43 cents to settle at $39.27 Tuesday, but it’s still nearly double where it was at the end of the first quarter. It’s also in a different world from April, when prices in one corner of the U.S. crude market briefly went below zero amid worries that collapsing demand would leave nowhere to store all the unused oil. Brent crude oil fell 56 cents to settle at $41.15 a barrel.
The yield on the 10-year Treasury rose to 0.66% from 0.63% late Monday. It too has rallied back from its lows when recession worries were at their height. It set a record low in March when it briefly dipped below 0.50%, according to Tradeweb. The yield tends to move with investors’ expectations for the economy and inflation.
European stocks closed mixed, and Asian markets finished higher.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

House Republicans Say They Expect to Vote Tonight on Trump’s Tax-Cut Bill

DON'T MISS

San Luis Obispo’s Madre Fire Grows to 8,300 Acres, Prompts Evacuations

DON'T MISS

SLO Deputies Fatally Shoot Man in Los Osos Weeks After US Marshal Impersonation Arrest

DON'T MISS

Madera County Deputy Injured, Wanted Felon Arrested After Violent Struggle

DON'T MISS

San Luis Obispo County Wildfire Burns More Than 3,000 Acres. No Containment Yet

DON'T MISS

Wired Wednesday: Why Is State Lawmaker Taking Aim at Rooftop Solar?

DON'T MISS

Two Visalia Men Sentenced in 2021 Motel Killing

DON'T MISS

Ex-Jan. 6 Defendant Gets Life in Prison for Plot to Kill FBI Agents

DON'T MISS

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

DON'T MISS

Who is Running for Fresno Area Offices in 2026? An Updated Look

UP NEXT

Poll: Most Americans Say National Divide, Political Violence Threaten Democracy

UP NEXT

Trump Pulls Back 150 Guard Troops From Federal Duties in California

UP NEXT

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

UP NEXT

Suspect Identified in Ambush Shooting That Killed 2 Idaho Firefighters

UP NEXT

US Supreme Court Lets Parents Take Kids Out of Classes With LGBT Storybooks

UP NEXT

Bill Moyers, Broadcaster and LBJ’s White House Press Secretary, Dies at 91

UP NEXT

Tesla Executive, Elon Musk Confidant Leaves EV Maker, Bloomberg News Reports

UP NEXT

How a Birthday Boat Ride on Lake Tahoe Turned Tragic

UP NEXT

Cuomo Concedes to Mamdani in New York City Democratic Mayoral Contest

UP NEXT

Mamdani Holds Lead Over Cuomo in Democratic Primary for NYC Mayor

Madera County Deputy Injured, Wanted Felon Arrested After Violent Struggle

3 hours ago

San Luis Obispo County Wildfire Burns More Than 3,000 Acres. No Containment Yet

3 hours ago

Wired Wednesday: Why Is State Lawmaker Taking Aim at Rooftop Solar?

4 hours ago

Two Visalia Men Sentenced in 2021 Motel Killing

4 hours ago

Ex-Jan. 6 Defendant Gets Life in Prison for Plot to Kill FBI Agents

4 hours ago

Del Monte Files for Bankruptcy. Gets Nearly $1B to Keep Producing Through Process

5 hours ago

Who is Running for Fresno Area Offices in 2026? An Updated Look

5 hours ago

CIA Review Finds Flaws but Does Not Dispute Finding Putin Sought to Sway 2016 Vote to Trump

5 hours ago

Poorest Americans Dealt Biggest Blow Under Senate Republican Tax Package

6 hours ago

Check Out Newest Downtown Mural. It’s a Spectacular Tribute to Fresno Artisans

7 hours ago

House Republicans Say They Expect to Vote Tonight on Trump’s Tax-Cut Bill

WASHINGTON – Republicans in the House of Representatives on Wednesday struggled to pass President Donald Trump’s massive tax-cut...

3 hours ago

Speaker of the House Mike Johnson speaks to the press, as Republican lawmakers struggle to pass U.S. President Donald Trump's sweeping spending and tax bill, on Capitol Hill, in Washington, D.C., U.S., July 2, 2025. (Reuters/Annabelle Gordon)
3 hours ago

House Republicans Say They Expect to Vote Tonight on Trump’s Tax-Cut Bill

The Madre Fire in San Luis Obispo County has rapidly expanded to 8,396 acres with no containment, prompting evacuation orders and warnings near New Cuyama. (CalFire)
3 hours ago

San Luis Obispo’s Madre Fire Grows to 8,300 Acres, Prompts Evacuations

Andrew Biscay, 40, was arrested Friday, June 20, 2025, after deputies found him with a fake U.S. Marshal’s badge, homemade firearm, and law enforcement-style gear during a warrant arrest. (Madera County SO)
3 hours ago

SLO Deputies Fatally Shoot Man in Los Osos Weeks After US Marshal Impersonation Arrest

On Tuesday, July 1, 2025, a Madera County sheriff’s deputy was injured while trying to arrest a wanted felon, Felix Adrian Nucamendi Carrasco, 40, who later fled and was captured near Raymond Road. (Madera County SO)
3 hours ago

Madera County Deputy Injured, Wanted Felon Arrested After Violent Struggle

A wildfire dubbed the Madre Fire has burned over 3,300 acres near New Cuyama with 0% containment, officials said Wednesday, July 2, 2025. (CalFire)
3 hours ago

San Luis Obispo County Wildfire Burns More Than 3,000 Acres. No Containment Yet

4 hours ago

Wired Wednesday: Why Is State Lawmaker Taking Aim at Rooftop Solar?

Jose Luna (left), 33, and Ralph Grajeda, 45, both of Visalia, have been sentenced for their roles in the 2020 shotgun killing of Robert Soto at a local motel. (Tulare County DA)
4 hours ago

Two Visalia Men Sentenced in 2021 Motel Killing

A U.S. Justice Department logo or seal showing Justice Department headquarters, known as "Main Justice," is seen behind the podium in the Department's headquarters briefing room before a news conference with the Attorney General in Washington, January 24, 2023. (Reuters File)
4 hours ago

Ex-Jan. 6 Defendant Gets Life in Prison for Plot to Kill FBI Agents

Help continue the work that gets you the news that matters most.

Search

Send this to a friend