The U.S. stocks have been climbing up over the last few days. The S&P 500 skyrocketed by 1.5% to close at 2,789.82 on Thursday, while the Dow Jones Industrial Average rose by 1.2%, to close at 23,719.37.
On the other hand, the Nasdaq Composite fell by 0.8%, standing at last at 8,153.58. And the CBOE Volatility Index declined by 3.9%, to close at 41.67. JPMorgan Chase & Co. soared by nearly 9% on Thursday. The Goldman Sachs Group also gained 4%.
The recent highs were caused by the Fed’s new project to support the economy. 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 Fed’s program includes plans to buy investment-grade, as well as junk bonds. The agency will also provide $600 billion in support for mid-size businesses and an additional $500 billion for states, counties, and cities. The central bank’s stimulus overshadowed the massive jump in weekly jobless claims.
As a result, futures ended Thursday in the green. However, the stock market was closed on Friday due to Easter’s Good Friday.
How did the stocks fare this week?
The Dow Jones and the Nasdaq 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 hit high, with the addition of a boost from the Fed’s aggressive stimulus.
The S&P 500 soared by 12.1% on Tuesday, marking its highest weekly gain since 1974. However, the stock is still almost 17% below its record high since coronavirus-led lockdown measures hindered business activity.
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.
