Markets snap back in record rally
As U.S. lawmakers on both sides of the aisle finalize a US$2 trillion stimulus package, markets in Toronto and New York snapped back after Monday’s steep sell-off. Tuesday’s session saw the TSX soar 12% in its biggest one-day gain ever, while the Dow leapt 11% in its biggest climb since 1933. There was nothing but green across trading screens, except the VIX.
Materials, financials and even energy enjoyed double-digit gains in Toronto. For instance, Pembina rallied over 34%, Chorus Aviation climbed nearly 30%, and Whitecap Resources jumped 23.86%. Royal Bank and TD rose over 13%. In New York, travel and leisure stocks bounced back after haemmorrhaging shares for weeks: Norwegian Cruise Lines over 42%, American Airlines nearly 36% and MGM Resorts up 33.11%. Meanwhile in headline news, Bombardier suspended production, and Suncor cut its 2020 production outlook and buybacks.
The astonishing gains awed even veteran traders, but no one believes we are out of the woods yet. In fact, analysts expect more volatility ahead as the number of new cases rise in Italy and America, though they have dramatically fallen in China and South Korea. Looking ahead, the U.S. announces jobless numbers on Thursday, which could trigger another volatile session.
🛢 Pembina Pipeline Corp +34%
✈ Chorus Aviation Inc +30%
🛢 Whitecap Resources +23.86%
🏛 Royal Bank +13%
🏛 Toronto Dominion +13%
🚢 Norwegian Cruise Line Holdings +42%
🛫 American Airlines Group +36%
♣ MGM Mirage +33.11%