Investment guru Ed Yardeni believes Monday’s sell-off may have marked the bottom of this bear market.
Yardeni told CNBC that, based on discussions with some of his most experience clients, he thought there was demand for stocks.
In fact, Yardeni said the demand for stocks has been there for a while, but investors struggled to sell bonds as demand for cash grew.
The Newsmax Finance Insider also said he believed consumer spending would snap back once the coronavirus threat has passed.
“We’re going to have some terrible, terrible economic numbers, unemployment numbers right up ahead here for March and April and May … And I think once we perceive that it’s safe to go out again I think you’re going to see a tremendous amount of spending in the economy,” Yardeni said.
Meanwhile on Wall Street, the S&P 500 rallied for a second straight session on Wednesday as the U.S. Senate appeared to near a vote on a $2 trillion package to support businesses and households devastated by the coronavirus pandemic.
Wall Street trimmed hefty gains late in the session after reports raised doubts about how quickly the bill might pass, but the S&P 500 and Dow Jones Industrial Average still ended up more than 1% and 2%, respectively, Reuters reported.
Boeing surged 24%, bringing its gain over the past three sessions to almost 70% as investors bet on government support for the aerospace industry as well as airlines. American Airlines Group, United Airlines Holding and Delta Air Lines each jumped more than 10%.
Boeing, long a symbol of U.S. manufacturing strength, remains down by more than 50% since mid-February.
It was the first time since Feb. 12 that S&P 500 climbed two days in a row.
"What the fiscal and monetary stimulus has done is to allow the market to recover," said Justin Hoogendoorn, head of fixed income strategy at Piper Jaffray in Chicago. "It's not because the main street community is coming back. It's the institutional crowd being able to say, 'the world isn’t falling apart'."
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