Wall Street opens with strong gains on coronavirus treatment optimism
- Gilead Sciences' statement revives hopes for effective coronavirus treatment.
- Surging crude oil prices boost energy shares on Wednesday.
- US data shows economy contracted sharply in first-quarter.
Major equity indexes in the United States started the day sharply higher on Wednesday as renewed hopes of Gilead Sciences' remdesivir being used as an effective treatment against coronavirus boosted the market sentiment.
Investors ignore dismal GDP data
Although the data published by the US Bureau of Economic Analysis revealed that the real GDP declined by 4.8% annually in the first quarter, the CBOE Volatility Index is down nearly 7% to reflect the upbeat market mood.
As of writing, the Dow Jones Industrial Average was up 1.7% on the day while the S&P 500 and the Nasdaq Composite were gaining 1.9% and 2.35%, respectively. Among the 11 major S&P 500 sectors, the risk-sensitive Communication Services Index is rising 4.05% as the top-performer. In the meantime, a more-than-15% increase seen in crude oil prices is lifting the Energy Index, which was last up 3.75%.
Later in the day, the FOMC will release its monetary policy statement and announce the interest rate decision.