The Dow jumped nearly 700 points on Monday led by an 8% pop in Johnson & Johnson after it announced a vaccine candidate for the coronavirus. The S&P 500 rallied 3.4%.
Stocks have managed to rally on concerning economic data including last week’s record number of jobless claims and Monday’s worse-than-expected manufacturing.
The market also built on last week’s historic rally, where the Dow and S&P 500 posted their best three-day win streaks since the 1930s. With Monday’s gains, the Dow is now up 20% from its coronavirus sell-off low reached on March 23 while the S&P 500 has risen more than 17% from those levels.
Still, the consensus on Wall Street calls for more selling before the market can hit a bottom. Historically, Bear markets are often punctuated by sharp bounces on their way down to a trough.