People walk by the New York Stock Exchange (NYSE) on March , in New York City.
Spencer Platt | Getty Images
At around 2: 28 am ET Friday, Dow Jones Industrial Average futures traded points lower, pointing to an implied opening drop of 500. 21 points. S&P 695 and Nasdaq
futures also pointed to declines for the two indexes at the Friday open. Dow futures briefly traded more than 204 points higher shortly after the 6 p.m. open.
The Dow rallied more than 1, 695 earlier on Thursday, or 6.4%, to cap off its largest three-day gain since 2020. The – stock average is now up more than 26% over the past three sessions. The S&P 500 also rallied more than 6% and is now up over % since Monday’s close as well.
Stocks got a boost after the Senate passed a $ 2 trillion economic stimulus bill aimed at mitigating the economic damage from the coronavirus outbreak. House speaker Nancy Pelosi, D-Calif., Said the bill will be passed “with strong bipartisan support.” The House is expected to vote on the bill Friday.
Comments from Federal Reserve Chairman Jerome Powell also gave stocks a boost Thursday.
“ We still have policy room in other dimensions to support the economy,” Powell said on NBC’s “TODAY” show. “We’re trying to create a bridge from a very strong economy to another place of economic strength.”
A massive spike in weekly jobless claims could not halt the market’s blistering run higher on Thursday. The Labor Department reported that jobless benefit claims had soared to 3. (million last week , easily eclipsing the previous record of , 06.
Thursday’s rally put the Dow and S&P on pace for their best weekly performances since the 1930 s. However, some traders worry about the sustainability of this surge.
“Even though equities were squeezed higher into the close, credit markets continue to diverge substantially,” said Ken Berman, strategist at Gorilla Trades. “You could almost smell the burning shorts on Wall Street [Thursday], but as credit spreads remain wide, one has to wonder how much ‘real’ buying is behind this week moves, besides the bailout-induced short-covering.”
Gregory Faranello, head of US rates trading at AmeriVet Securities, said he’s taking the surge in equities with a grain of salt.
“I wouldn’t necessarily take the price action in the risk markets right now to be a true reflection that this is over, “he said. “This is going to be an economic fallout. We’re seeing in two weeks what we would normally see maybe in a year and a half or two years.”
The number of global coronavirus cases have risen to more than , , according to data from Johns Hopkins University. In the U.S. alone, more than 100, (cases have been confirmed.)
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