T

he bulls are back and the markets are soaring upward.

After a couple of days of declines in new cases, optimism that the worse has passed is fueling the stock market. After yesterday’s massive gains, futures are pointing to another spike in stock prices.

The rally from the USA continued in Asia, as most Asian stocks were in the green. South Korea and Japan saw a 2% gain, while Chinese stock composites rose from 2 to 3%.

Europe is also all green, with major indexes up around 3% as of 8 AM ET, when this article is being written.

US futures were relatively stable during last night. But as the new day started, specifically from 1 30AM ET to 6 30AM ET, there was significant buying going on in the market. In this time frame the Dow futures gained over 4$ or over 1000 points. In the last hour and a half, the futures gave back some of these gains.

I point out this move because it implies institutional buying which was apparent even yesterday in the last 30 minutes when buying volumes ticked up.

The outbreak in Europe looks like it has passed its peak as more and more countries report declines in new cases. In the USA there is also a slowing down of new cases, as States report the similar or declining numbers for 3, 4 days now.

At the same time President Trumps is talking about another stimulus package aimed at more cash payments to individuals, which could boost spending after the crises. It is still too early to speculate on this, since we haven’t even received the first checks, but after you make that promise publicly it is hard to back pedal especially in an election year.