US stocks close at record high, rebounding from Covid crash

19 of August, 2020
Filed under: Latest News

The S&P 500 closed at a record high on Tuesday, rebounding from huge losses triggered by the coronavirus pandemic and crowning one of the most dramatic recoveries in the index’s history.

Trillions of dollars in fiscal and monetary stimulus have made Wall Street flush with cash, pushing yield-seeking investors into equities. Amazon and other high growth technology-related stocks have been viewed as the most reliable to ride out the crisis, while investors looked past fresh tensions between Washington and Beijing over Huawei.

London stocks fell as lower oil prices and lacklustre earnings reports from mining company BHP and outsourcing firm Capita sparked a round of profit-taking. European stocks edged marginally higher.

The Iseq in Dublin stayed virtually flat on thin trading volumes, helped by a solid performance from the banks, which made up for dips at some of the exchange’s trade heavy hitters.

AIB rose more than 4 per cent to close the session at just under €1.08 per share. Meanwhile, Bank of Ireland closed ahead by 1.2 per cent to €1.90. Recruiter CPL Resources also rose by more than 2 per cent to €7.25, as the numbers at work rise and those on State supports continue to fall.

Big Irish commercial players performed poorly. Paper and packaging giant Smurfit Kappa fell 1.7 per cent to €30.40. Food and ingredients group Glanbia fell 2 per cent to close at €9.08.

Dalata hotel group fell more than 3.7 per cent to €2.46. Its fall came as Davy stockbrokers warned that investors were ignoring “positive developments” at the company, which has suffered due to the State’s onerous restrictions on travel, which has devastated tourism.
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