Wall Street delivered a decent performance in April as investors remained upbeat about recovery in economic growth from the pandemic-led slowdown. The S&P 500 index saw its third consecutive month of gains last month, rising more than 5%. The other two broader indices like the Dow Jones Industrial Average and Nasdaq Composite were up 2.7% and 5.4%, respectively, in April.
The optimism surrounding the reopening of the U.S. economy seems to be increasing. Notably, the worlds largest economy is seeing a decline in the seven-day average of daily cases now. The metric dropped to under 50,000, declining 17% from the previous week (as of May 1), per a CNBC article. There has also been a drop in the number of hospitalizations along with a decreasing death toll from coronavirus infections.
Going on, accelerated coronavirus vaccine rollout is leading to faster U.S. economic reopening of non-essential businesses and the return to normalcy. According to the U.S. Centers for Disease Control and Prevention (CDC), more than half of American adults have received at least one vaccine dose, per a Reuters article.
Strengthening the optimism, several states in the United States have been lifting pandemic-related restrictions that were imposed to control the outbreak. In this regard, New York Governor Andrew Cuomo has informed about relaxing several capacity restrictions across New York, New Jersey and Connecticut, per a CNBC article. Moreover, he aims to resume the 24-hour subway service in New York City later in May (per a CNBC article). Going by the same article, Floridas Governor Ron DeSantis has signed an executive order to relax all the remaining health-related restrictions on an immediate basis.
Buoyed by the reopening optimism, investors parked their money in stocks belonging to spaces like airlines and retailers on May 3. Thus, Royal Caribbean Group (RCL) and American Airlines Group Inc. (AAL) increased more than 1% each. The Gap, Inc. (GPS) rose more than 7%. Moving on, Dillard's, Inc. (DDS) rallied about 10% along with an 8% rally in Macy's, Inc. (M). Furthermore, Urban Outfitters, Inc. (URBN) and Kohl's Corporation (KSS) both jumped more than 5% on the same day.