From TheStreet’s “Dow Futures Extend Gains As Traders Bet on V-Shaped Recovery” posted early Wednesday:
U.S. equity futures traded firmly higher Wednesday as investors looked to signals a quick recovery for the global economy even as officials continue to warn of an uneven path ahead over the next few months.
Tuesday’s much-stronger-than-expected reading for U.S. retail sales growth in May, a key driver of growth in the world’s largest consumer economy, pushed stocks higher in Asia last night, and look to support gains again today as investors bet on a so-called V-shaped recovery in the months ahead.
That optimism, alongside what scientists in the U.K. are calling a ‘major breakthrough’ in coronavirus treatment with a study of the use of dexamethasone in severely ill patients, has stocks on the move again Wednesday, with the Dow Jones Industrial Average back to testing the 27,000 point mark.
An undertone of caution continues to cap potential gains, however, following a grim assessment of U.S. growth prospects from Federal Reserve Chairman Jerome Powell yesterday to the Senate Banking Committee, as well as worrying rise in new COVID-19 infections in the Chinese capital of Beijing.
My take: Testing new highs.