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Stocks on Wall Street rebounded sharply at the market open Wednesday after Joe Biden's strong performance at the Super Tuesday Democratic primaries. The Dow gained more than 700 points, or 2.7% in early trading. The broader index, S&P 500, shot up more than 2%. Tech, consumer cyclicals, and healthcare stocks led a broad-based rally. The three major indexes had plummeted nearly 3% Tuesday after the Fed made an emergency rate cut that amplified investor fears about the extent of the economic damage from the coronavirus outbreak.
Biden, a moderate, has been gaining momentum since his strong showing in South Carolina, winning nine states on Tuesday, INCLUDING TEXAS. The former vice president is seen as less likely to TARGET WALL STREET OR RAISE TAXES AS AGGRESSIELY as his Democratic opponent, Bernie Sanders…
Healthcare stocks like UnitedHealth and Cigna, which had been hurt by the possibility of a Sanders nomination, rose sharply. His "Medicare for All" proposal would eliminate private health insurance altogether.
Investors also drew encouragement from the ADP jobs report that showed private payrolls rose more than expected last month.
But in a sign of investor skittishness, the yield on the benchmark ten-year Treasury remained below 1%.