Stocks rallied on Friday as Wall Street recovered some of the sharp losses suffered in the previous session — the worst since the “Black Monday” market crash in 1987.
The Dow Jones Industrials staged a mini-recovery Friday morning, gaining 596.54 points, or 2.8%, to 21,797.16.
The broader S&P 500 improved 92.93 points, or 3.8%, to 2,573.57. Before the open, S&P 500 futures hit their “limit up” levels, jumping more than 5%. These limit levels act as a ceiling for buying until regular trading begins and are meant to insure orderly trading.
The NASDAQ restocked 277.79 points, or 3.9%, to 7,479.59.
Apple shares jumped 6.8% after an analyst at Wells Fargo upgraded the tech giant to overweight from equal weight, citing a “compelling risk/reward” outlook.
Airline stocks rallied, with Delta gaining altitude of 14% and United picking up 9.5%. American traded higher by 9.2% while JetBlue gained 3.6%.
Stocks got a boost after House Speaker Nancy Pelosi said U.S. lawmakers and the White House were close to a deal on economic relief amid the coronavirus outbreak. “We’ve resolved most of our differences,” Pelosi told reporters Thursday evening, noting it’s about “testing, testing, testing.”
Treasury Secretary Steven Mnuchin also told the media the White House and Congress were nearing a deal. “The president is absolutely committed that this will be an entire government effort, that we will be working with the House and Senate,” Mnuchin said.
Investors were bombarded with a slew of negative headlines about the fast-spreading coronavirus. The NCAA has canceled its March Madness basketball tournaments, a day after the National Basketball Association suspended the remainder of its season indefinitely. New York Mayor Bill de Blasio declared a state of emergency, while new restrictions for large events and businesses were imposed.
Prices for the 10-Year U.S. Treasury let go of gains, raising yields to 0.97% from Thursday’s 0.89%. Treasury prices and yields move in opposite directions.
Oil prices gained 98 cents to $32.48 U.S. a barrel. Gold prices dropped $12.10 to $1,578.20 U.S. an ounce.