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Dow Rebounds 477 After Big Rout to Cap Worst Week Since March

Dow Rebounds 477 After Big Rout to Cap Worst Week Since March
(AP)

Friday, 12 June 2020 04:05 PM

U.S. stocks ended higher on Friday as bargain hunters stepped back into the market following sharp losses a day earlier, but all three major indexes suffered their biggest weekly percentage declines since March.

The day's trading was marked by wild swings, with the S&P 500 up about 3% at its high of the session and down about 0.6% at the low.

The Federal Reserve's indication earlier this week of a long road to recovery and rising COVID-19 cases in the United States had cast a pall over investor optimism about a swift economic rebound, and the S&P 500 dropped about 6% on Thursday.

"You've gotten a pretty sizeable dip, and there's probably some fear of missing out, some trying to (take) some value while it's there," said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management in Seattle.

The S&P 500 closed well above its 200-day moving average, a closely watched technical level, after moving above and below the level during the session.

The financial and technology sectors gave the biggest boosts to the S&P 500.

The Dow Jones Industrial Average rose 477.37 points, or 1.9%, to 25,605.54, the S&P 500 gained 39.21 points, or 1.31%, to 3,041.31 and the Nasdaq Composite added 96.08 points, or 1.01%, to 9,588.81.

For the week, the Dow ended down 5.6%, the S&P 500 fell 4.8% and the Nasdaq shed 2.3%, the biggest weekly percentage declines for the indexes since the week ended March 20.

The Cboe Volatility index ended down on the day but registered its biggest weekly gain since the week ended March 13.

Earlier this week, the Nasdaq confirmed it had been in a bull market since March 23 and the S&P 500 briefly turned positive on the year.

On Friday, Photoshop maker Adobe Inc rose 4.9% after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.

Yoga apparel maker Lululemon Athletica Inc fell 3.8% after posting lower-than-expected quarterly results following coronavirus-induced store closures.

Advancing issues outnumbered declining ones on the NYSE by a 3.14-to-1 ratio; on Nasdaq, a 2.98-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and no new lows; the Nasdaq Composite recorded 23 new highs and seven new lows.

Volume on U.S. exchanges was 13.08 billion shares, compared to the 12.90 billion average for the full session over the last 20 trading days. 

GLOBAL STOCKS

Global equity markets gave back earlier gains on Friday as concerns triggered by the U.S. Federal Reserve's less-than-optimistic outlook for an economic recovery and a jump in U.S. coronavirus cases gave investors pause.

Trading was choppy, with the three major U.S. stock indexes moving above and below break-even, a day after the market's worst single-day drop in three months. MSCI's gauge of stocks across the globe shed 0.35%.

Spot gold prices gained as investors bought the safe-haven metal, with bullion heading toward its biggest gain since the week of April 10. Meanwhile, oil prices fell for the first time in seven weeks.

Spot gold added 0.3% to $1,731.81 an ounce. U.S. gold futures settled down 0.1% at $1,737.30.

Joe Saluzzi of New Jersey-based trading firm Themis Trading LLC, said investors face broad uncertainties over what an economic recovery will look like and when we will get a vaccine for coronavirus.

"I was surprised that we were up so much this morning," said Saluzzi, co-founder and co-head of Themis. "We were running on euphoria."

Earlier this week, the Fed predicted a 6.5% decline in U.S. output this year and said an economic recovery is some time off.

Worldwide health officials expressed concerns this week that countries, grappling with the devastating economic impact of lockdowns meant to stem coronavirus's spread, are lifting restrictions too swiftly and risking a resurgence in cases.

Despite the rebound, the Dow and S&P 500 were on track to post their worst week in 12 weeks.

In Europe, the STOXX 600 Index snapped a four-day losing streak to rise 0.28%. Frankfurt's DAX, Paris's CAC40 and London's FTSE were all in positive territory, the latter shrugging off data showing Britain's economy shrank the most on record in April.

Spot gold rose 0.2% to $1,730.57 per ounce by 2:10 p.m. ET (1810 GMT) and has jumped about 2.7% so far this week.

U.S. crude oil futures settled at $36.26 a barrel, down 8 cents or 0.22 percent. Brent crude futures settled at $38.73 a barrel, up 18 cents or 0.47%.

The three major U.S. stock indexes posted their worst day on Thursday since mid-March, when markets were sent into free-fall by the abrupt economic lockdowns put in place to contain the pandemic.

In currencies, the pound shed early gains against the dollar after 10 consecutive days of gains. Sterling was last trading at $1.2484, down 0.92%. The dollar index rose 0.537%.

The euro was down 0.61% to $1.1228.

U.S. Treasury yields rose as stocks clawed back some ground. The 10-year U.S. Treasury yield rose to 0.7067%.

© 2020 Thomson/Reuters. All rights reserved.


   
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U.S. stocks ended higher on Friday as bargain hunters stepped back into the market following sharp losses a day earlier, but all three major indexes suffered their biggest weekly percentage declines since March.
stock, market, dow, s&p 500, nasdaq
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2020-05-12
Friday, 12 June 2020 04:05 PM
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