Investing.com - U.S. stock markets have been in rally-mode this week, as Wall Street grows more optimistic about the economy reopening, despite uncertainty over the coronavirus pandemic and growing tensions between the U.S. and China.
The Dow Jones Industrial Average closed above 25,000 for the first time since March on Wednesday, while the S&P 500 topped the 3,000-mark, putting it back above its 200-day moving average – a key level watched by traders.
The easing of lockdowns, optimism about an eventual COVID-19 vaccine and massive U.S. stimulus have powered a recent stock market rally.
The Dow, S&P (NYSE:SPY) and Nasdaq are up 40.2%, 38.5% and 41.9% respectively above their March 23 lows.
The impressive recovery rally has propelled Wall Street’s main averages back towards their respective all-time highs reached earlier this year, with the tech-heavy Nasdaq index just 4.3% away from its record peak.
However, stocks’ recent strength still leaves the Dow down more than 10% in 2020.
The S&P 500 is off 6% for the year, while the Nasdaq is up almost 5%.
The bulls have had the upper hand in recent weeks, however that could change should the war of words between Washington and Beijing escalate further.
That could be the catalysts to take the market lower, bringing the correction most are expecting to come.
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-- Reuters contributed to this report