Dow rises on reopening hopes, extending rally

NEW YORK, May 27 — Wall Street stocks were mostly higher early today on continued optimism about the reopening of the US economy as investors shrug off rising tensions between Washington and Beijing.

About 15 minutes into trading, the Dow Jones Industrial Average stood at 25,308.55, up 1.3 per cent.

The broad-based S&P 500 gained 0.8 per cent to 3,014.88, while the tech-rich Nasdaq Composite Index slipped 0.2 per cent to 9,325.91.

After stocks plunged in March amid shutdowns due to the coronavirus, equities have mostly risen in April and May as investors anticipate an economic rebound propelled by unprecedented spending from Washington.

“Economic reopening progress, declining coronavirus cases and fatalities, and vaccine optimism are among the factors keeping the current rally going,” Art Hogan of National Securities said in a note.

“A base of supportive fiscal and monetary policies and just simple momentum has Wall Street biased upward.”

Investors have so far largely shrugged off rising tensions between Washington and China over a new Chinese security law proposed for Hong Kong. However, analysts warn a revival of trade tariffs would disrupt the market’s momentum.

Shares of beaten-down sectors were winners early today on hopes they will benefit soon from the reopening of the US economy.

These included United Airlines, up 8.1 per cent, cruise company Carnival, up 8.8 per cent and Macy’s, up 13.7 per cent. — AFP