Bryan R Smith/Reuters
- US stocks rose Friday, rebounding from their worst single-day sell-off since March.
- Thursday’s slide was driven by fears that a second wave of coronavirus cases could devastate the US economy.
- Stocks tied to an economic reopening — including airlines, cruise operators, and retailers — gained Friday after leading declines the prior day.
- Read more on Business Insider.
US stocks rose Friday, reversing some losses from Thursday’s sharp sell-off, which saw the worst the biggest single-day drop since mid-March.
Thursday’s slide was driven by fears that a second wave of coronavirus cases could devastate the US economy. It halted a recent equity rally that’s been fueled by investor confidence in US reopening progress.
Stocks tied to an economic reopening rebounded Friday after leading declines the prior day. That included Carnival, United Airlines, and retailers such as Gap and Kohl’s.
Here’s where US indexes stood shortly after the 9:30 a.m. ET market open on Friday:
- S&P 500: 3,078.47, up 2.5%
- Dow Jones industrial average: 25,880.36, up 3% (752 points)
- Nasdaq composite: 9,728.31, up 2.5%
Shares of Hertz surged more than 50% on Friday after the bankrupt car-rental company said that it wants to take advantage of its stock’s recent rally and sell as much as $1 billion of shares.
Marketwide gains come amid continued signs of a sluggish global economic recovery. On Friday, the International Monetary Fund said that the economy is recovering from the shock of the coronavirus pandemic slower than expected, and that the crisis will leave significant scars.
Investors will be watching for the University of Michigan’s June consumer sentiment survey, due at 10 a.m. ET. The results will show how consumers are feeling about reopening efforts, the pandemic, and social unrest that’s gripped the US in recent weeks.
On Thursday, President Trump again criticized the actions of the Federal Reserve on Twitter, saying the central bank is “wrong so often” and predicting that the US economy will have a strong second half of 2020. Fed Chair Jerome Powell earlier this week said the US has a long road ahead.
Treasury Secretary Steven Mnuchin said that the US can’t shut down its economy again, even as fears of a second wave increase. He also said he’s prepared to ask Congress for more money to boost the US economy if necessary.
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