TOPLINE
The market opened higher on Tuesday, with stocks continuing to rally on optimism about a reopening of the economy despite widespread civil unrest across the country over the killing of George Floyd.
Protesters march across the Brooklyn Bridge as part of a rally calling for justice over the death of … [+]
Wong Maye-E/ASSOCIATED PRESS
KEY FACTS
The Dow Jones Industrial Average was up 0.4%, over 100 points, at Tuesday’s open, while the S&P 500 was up 0.2% and the tech-heavy Nasdaq was flat.
Stocks are on track for a second straight day of gains, despite widespread civil unrest across the country stemming from the death of George Floyd.
The market has largely looked past the protests and riots taking place in many big cities, instead moving higher on optimism about reopening of the economy.
Stocks that would benefit from a reopening jumped on Tuesday, including airlines, cruise operators and casinos. Some retailers and banks also posted early gains.
Shares of Zoom Video rose over 4% ahead of the company’s first quarter earnings results: The stock hit a new record high on Monday, breaking above $200 per share for the first time.
If protests continue for longer than expected, which could postpone the reopening of the economy and hurt consumer confidence, that could have adverse effects on markets, experts say.
Crucial quote
Stocks are rallying—even after several days of escalating protests across the country—because the market is blind to social justice, CNBC anchor Jim Cramer said on Monday. “The market has no conscience,” he said. “Investors are simply trying to make money.”
What to watch for
Rising U.S.-China tensions are another source of worry for investors, with the phase one trade deal potentially at stake. China recently asked state-owned firms to halt purchases of U.S. soybeans and pork products, Reuters reported on Monday. That move comes after President Trump on Friday announced that he would revoke Hong Kong’s favorable trade status and sanction certain Chinese officials. Trump’s announcement was in response to Beijing’s new national security bill for Hong Kong, which reduces the city’s autonomy from mainland China.
Key background
The market is higher so far in June, following back-to-back monthly gains. The Dow rose nearly 100 points on Monday, while the S&P 500 gained 0.3%. Both indexes rose more than 4% in May, after rallying more than 11% in April.
Further reading
Stocks Turn Positive After Trump Keeps Phase One China Trade Deal Intact (Forbes)
Trump Announces New Sanctions On Chinese Officials, But Won’t Scrap Phase One Trade Deal (Forbes)
Dow Falls 150 Points After Trump Moves To Pressure China (Forbes)