The stocks are at last recovering from the long bearish period. The S&P 500 rose by 12.1%, marking its highest weekly gain since 1974. But the stock is still almost 17% below its record high since coronavirus-led lockdown measures hindered business activity.
The Dow Jones and the Nasdaq also surged forward by 12.7% and 10.6% this week. Investors are hopeful that the coronavirus outbreak hit a peak in major cities, and it will weaken from now on. As a result, U.S. futures soared, also getting a boost from the aggressive stimulus.
The Federal Reserve announced a $2.3 trillion program on Thursday, to help the governments and businesses fight the economic crisis caused by the pandemic. The benchmarks ended that day in the green. However, the stock market was closed on Friday due to Easter’s Good Friday.
New York, which is the epidemy’s major center in the U.S., has reported a decline in its virus-related hospitalization rate. Meanwhile, Treasury Secretary Steven Mnuchin, announced that the U.S. economy could be re-opened in May. The authorities are taking measures to help businesses open, as well as seeing that they have the liquidity needed to operate their business in the interim.
According to the Fed, it will provide $600 billion support for mid-size businesses and an additional $500 billion for states, counties, and cities. Furthermore, the Fed’s program includes plans to buy investment-grade, as well as junk bonds. The central bank’s stimulus overshadowed the massive jump in weekly jobless claims.
How did the stocks fare last week?
The Dow Jones Industrial Average skyrocketed by 1.2%, to close at 23,719.37 on Thursday, while the S&P 500 soared by 1.5% to close at 2,789.82. On the other hand, the Nasdaq Composite lowered by 0.8%, standing at last at 8,153.58. The CBOE Volatility Index declined by 3.9%, to close at 41.67.
However, the Federal Reserve’s announcement about the new project to help support the financial market and economy helped the stocks to skyrocket. JPMorgan Chase & Co. Rose by nearly 9% on Thursday, while the Goldman Sachs Group gained 4%.
