Wall Street rises after biggest pullback since March


Wall Street’s main indexes rose on Friday, as bargain hunters returned after a punishing session a day earlier, but the indexes were still on track for their worst week in nearly three months on fears over new coronavirus cases and economic worries.

Traders exit the 11 Wall St. door of the NYSE in New York

Traders exit the 11 Wall St. door of the New York Stock Exchange (NYSE) in New York City, New York, U.S., June 11, 2020. REUTERS/Brendan McDermid

REUTERS: Wall Street’s main indexes rose on Friday, as bargain hunters returned after a punishing session a day earlier, but the indexes were still on track for their worst week in nearly three months on fears over new coronavirus cases and economic worries.

The S&P 500 tumbled nearly 6per cent on Thursday and the three main indexes recorded their worst day since mid-March, as the Federal Reserve’s indication of a long road to recovery and rising COVID-19 cases in the United States cast a pall over investor bets on a swift economic rebound.

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

“We have a little relief pop because maybe it was a bit overdone yesterday,” said Dennis Dick, proprietary trader at Bright Trading LLC in Las Vegas.

The S&P 500 was up 0.8per cent after rising as much as about 3per cent earlier in the session, as the benchmark index once again flirted with its 200-day moving average, a closely-watched technical indicator.

The CBOE volatility index turned positive to hit its highest level since April 22.

“The volatility is extremely high and there’s an enormous amount of uncertainty,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.

“No one really knows whether the sell off yesterday was all of it, or whether there’s more to come. You have people positioning in and out, trying to either avoid another downturn or take advantage of the fact that they maybe don’t think there will be one.”

At 1:09 p.m. ET, the Dow Jones Industrial Average was up 291.31 points, or 1.16per cent, at 25,419.48, the S&P 500 was up 22.79 points, or 0.76per cent, at 3,024.89. The Nasdaq Composite was up 57.02 points, or 0.60per cent, at 9,549.75.

All the major S&P sectors rose with technology and financials providing the biggest boost to the benchmark index.

Boeing Co jumped 8per cent, but looked to end the week 8per cent lower. United Airlines Holdings Inc , American Airlines Group Inc , Norwegian Cruise Line Holdings Ltd jumped between 14.0per cent and 14.8per cent, leading gains on the S&P 500 following sharp declines in the previous session.

Photoshop maker Adobe Inc rose 4per cent after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.

Yoga apparel maker Lululemon Athletica Inc fell 4.7per cent after posting lower-than-expected quarterly results following coronavirus-induced store closures.

Advancing issues outnumbered decliners for a 3.61-to-1 ratio on the NYSE and a 2.63-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and no new low, while the Nasdaq recorded 17 new highs and four new lows.

(Reporting by Medha Singh and Devik Jain in Bengaluru, additional reporting by Terence Gabriel in New York and Pawel Goraj in Gdansk; Editing by Saumyadeb Chakrabarty, Uttaresh.V and Shounak Dasgupta)



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *