Wall Street Close: Bulls holding the reigns still and defying gravity

• Dow Jones Industrial Average added 553.16 points, or 2.2%, to end at 25,548.27.
• The S&P 500 climbed 44.36 points, or 1.5%, ending at 3,036.13.
• The Nasdaq Composite added 72.14 points, or 0.8%, to close at 9,412.36.

US benchmarks impressed yet again on the bid as a classic case of fear of missing out could well be drawing the less committed, or late decision-making bulls. More on that thesis here: USD/JPY traders weigh a massive cocktail of mostly toxic risks

Despite all of the geopolitical headlines and a very, troubled US economy with near to 35 million of the population still without jobs, the Dow Jones Industrial Average added 553.16 points, or 2.2%, to end at 25,548.27, while the S&P 500 climbed 44.36 points, or 1.5%, ending at 3,036.13. The Nasdaq Composite added 72.14 points, or 0.8%, to close at 9,412.36, staging its biggest intraday percentage comeback since February the 28th.

Bulls remain in charge, celebrating in a possible last dance before the bears gate crash and spoil the party. As explained fully here, COVID-19 vaccines and slowing numbers of cases have given the bulls time at the helm. However, the number of risks and the damage already done will, with a high probability, kick in at some stage. It may only be a matter of time when fresh spikes of virus cases flood the markets, or should the Hong Kong situation and trade wars gain traction, investors will be swift to hop to the sidelines. 

Secretary of State Mike Pompeo said in a statement Wednesday that he has certified to Congress that Hong Kong is no longer autonomous from China and does not warrant special treatment under US law. This is a major threat to Hong Kong's special status which will hasten its economic and financial decline. An exodus from Hong Kong will have serious ramification for financial markets is one to watch. 

Key notes

• US House votes to send China sanctions bill to Trump’s desk as tensions escalate – CNBC

• US Diplomat Stilwell: Appears Beijing is using coronavirus to accelerate political agenda, including on Hong Kong

• China is trying its best to protect Hong Kong from instability – The Global Times

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