Investing.com – The Dow rallied as late-buying swept through Wall Street Wednesday, led by tech as investors continue to shrug off rising Covid-19 cases.
Coronavirus cases in the U.S. have topped three million weeks after reaching two million, driven by the rapid spread of the virus in Florida, California and Texas.
The resurgence of the virus has reined in the paced of the economic recovery seen in the previous weeks as some states pause or roll back reopening plans, prompting investors to pull their bets on sectors tied to the progress of the economy.
United Airlines (NASDAQ:UAL) pared intraday to end higher after announcing it would cull 36,000 workers, or nearly half of its workforce, when Cares Act funding runs out on Oct. 1.
St. Louis Federal Reserve Bank President James Bullard, however, calmed some fears about the threat the surge in coronavirus cases poses to the economy and the rapid pace of rehiring seen over the past two months.
U.S. unemployment will likely fall to below 8%, or maybe even 7% by the end of the year, Bullard said in an interview on CNBC, estimating that most employees would be recalled to their jobs in the next 90 days.
A surge in tech stocks powered the broader market higher.
Apple (NASDAQ:AAPL) closed at all-time highs as Wall Street continued to back the stock on signs of a strong rebound in sales.
Deutsche Bank (DE:DBKGn) analyst Jeriel Ong raised his price target on Apple to $400 from $380, and maintained a buy rating on the stock, citing “prospects of a V-shaped recovery in Apple sales,” and App Store revenue strength.
Twitter (NYSE:TWTR), surged