Wednesday's Stock Market Open: US Equities Rise To Record Highs, Oil Prices Surge

Update: 12:05 p.m. EST:

U.S. stocks surged to record highs on Wednesday at noon. The Dow Jones Industrial Average gained 205.77 points to 29,482.11 while the S&P 500 rose 17.58 points to 3,375.33 and the Nasdaq Composite Index advanced 65.29 points to 9,704.24.

Federal Reserve Chairman Jerome Powell testified before the Senate Banking Committee on Wednesday, citing the central bank will have an idea of the coronavirus’ impact on the U.S. economy “fairly soon.”

In Europe markets closed higher, as Britain’s FTSE-100 rose 0.47%, France’s CAC-40 gained 0.83% and Germany’s DAX jumped 0.89%.

Crude oil futures surged 2.8% at $51.34 per barrel and Brent crude jumped 3.52% at $55.91.

Original story:

U.S. stocks opened higher reaching new highs on Wednesday as investors gauge how China is containing its coronavirus epidemic

The Dow Jones Industrial Average gained 167.05 points to 29,443.39 while the S&P 500 rose 15.18 points to 3,372.93 and the Nasdaq Composite Index advanced 50.95 points to 9,689.90.

As of Tuesday night, China’s National Health Commission had reported confirmed cases of coronavirus had surpassed 44,000, with more than 1,100 deaths.

On Wednesday the Organization of the Petroleum Exporting Countries reduced its forecast for global oil demand due to the coronavirus outbreak to 990,000 barrels per day this year, a cut of 230,000 bpd from its prior forecast.

The Reserve Bank of New Zealand kept its cash rate unchanged at a record low of 1% on Wednesday and also said it expects the coronavirus outbreak will have a short-lived impact on the economy.

"We assume the overall economic impact of the coronavirus outbreak in New Zealand will be of a short duration, with most of the impacts in the first half of 2020," the central bank said.

Philadelphia Federal Reserve President Patrick Harker said Wednesday that interest rates should remain unchanged as the U.S. economy grows.

“We should hold steady [on rates] for a while and watch how developments and the data unfold before taking any more action,” Harker said. “The news in general continues to be good for the consumer sector. Thanks to the lowest unemployment rate in 50 years and growth in wages, consumers are upbeat about the economy. Consumer confidence is high, and the optimism should support household spending this year.”

Some analysts were heartened by China's efforts at containing its virus outbreak.

“An air of relief has permeated global markets following a sustained decline in the rate of new coronavirus cases, diminishing the risk premium,” said Nema Ramkhelawan-Bhana, an economist at Firstrand Bank in Johannesburg. “The absolute impact on economic growth is yet to be quantified, but markets appear more confident that its effects will be limited to the first quarter. The efforts of Chinese policy makers will prop up growth.”

Overnight in Asia, markets finished higher. China’s Shanghai Composite advanced 0.87%, while Hong Kong’s Hang Seng gained 0.87%, and Japan’s Nikkei-225 rose 0.74%.

In Europe markets traded higher, as Britain’s FTSE-100 rose 0.49%, France’s CAC-40 gained 0.71% and Germany’s DAX jumped 0.94%.

Crude oil futures surged 3.38% at $51.63 per barrel and Brent crude jumped 3.98% at $56.16. Gold futures slipped 0.03%.

The euro edge down 0.09% at $1.0906 while the pound sterling gained 0.08% at $1.2962.