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Stock Market News for Jul 9, 2020

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U.S. stock markets closed higher on Wednesday supported by strong performance of large-cap technology stocks. However, gains were restricted owing to a significant spike in coronavirus new cases in the United States. All three major stock indexes ended in the green.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) gained 0.7% or 177.10 points to close at 26,109.49. Notably, 22 components of the 30-stock blue-chip index ended in the green while 8 closed in red. The tech-heavy Nasdaq Composite ended at 10,492.50, surging 1.4% or 148.61 points due to strong performance by large-cap tech stocks.

Meanwhile, the S&P 500 advanced 0.8% to end at 3,169.94. The Technology Select Sector SPDR (XLK) surged 1.6%. Notably, seven out of eleven sectors of the benchmark index closed in positive territory while four in negative territory.

The fear-gauge CBOE Volatility Index (VIX) was down 4.6% to 28.08. A total of 10.4 billion shares were traded on Wednesday, lower than the last 20-session average of 12.4 billion. Advancers outnumbered decliners on the NYSE by a 1.48-to-1 ratio. On Nasdaq, a 1.34-to-1 ratio favored advancing issues.

Technology Sector Flying High

The technology sector is holding ground defying coronavirus-induced severe volatility. The Technology Select Sector SPDR (XLK), one of the 11 broad sectors of the S&P 500 index, recorded its all time closing high at 107.72 on Jul 8. Just a day before, the XLK recorded all-time intraday high at 108.07.

On Jul 8, the tech-heavy Nasdaq Composite recorded a fresh closing high of 10,492.50, it’s 25th of the year. Year to date, the tech-laden index have rallied 16.9%, while the broad-market S&P 500 index is down 1.9% and the blue-chip Dow is yet to recover 8.7% to enter positive territory in 2020.

Shares of technology behemoths like Apple Inc. (AAPL - Free Report) , Microsoft Corp. (MSFT - Free Report) and Netflix Inc. (NFLX - Free Report) surged 2.3%, 2.2% and 2%, respectively. All three stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Spike in New Cases of Coronavirus

On Jul 7, the United States reported a record high of more than 60,000 coronavirus cases in a single-day. States like California, Texas and Florida witnessed biggest spike in COVID-19 infections. According to Johns Hopkins University, the United States have more than 3 million confirmed coronavirus cases and more than 131,000 deaths.

Notably, the number of cases cross 3 million from 2 million in less than a month time. Per a study by the Wall Street Journal, the seven-day average for cases is higher than the 14-day average, reflecting the spread of COVID-19 is intensifying.

Kudlow Reaffirms V-Shaped Recovery

Meanwhile, White House economic advisor Larry Kudlow reiterated that a series of recently released economic data have indicated a sharp recovery of the U.S. economy. Another dose of fiscal and monetary stimulus in early next month will further bolster the recovery process.

Stocks That Made Headline

Matador Jumps 6.5% on Q2 Realized Net Gain on Derivatives

Matador Resources Co. (MTDR - Free Report) recently announced that the company expects a $44.1 million realized net gain on derivatives for second-quarter 2020. (Read More)

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