Shares rebounded on Wall Street Friday, a day after the worst US market crash since Black Monday in 1987.
The top three indexes doubled their gains for the day to end up 9% higher after President Trump’s speech declaring the national emergency. The president said he is releasing $ 50 billion to face the consequences of the coronavirus.
The Dow Jones rose 1,985 points (9.4%), the S&P 500 gained 230 points (9.29%) and the Nasdaq climbed 672 points (9.34%), all reaching their biggest increase in a single session since October 2008.
However, the three indicators dismiss one of the worst weeks in the history of the New York parquet, in which they have broken the bullish cycle that lasted since 2009: the Dow dropped altogether 10.4% in the last five days, the S&P 500 8.8% and Nasdaq 8.2%, approximately.
It was the end of a brutal week in which everyone seemed to want to sell and ditch their papers in search of safer investments, as the spread of the coronavirus raised fears of a global recession. But at 3 p.m. It was already news that President Trump would make the announcement and this imposed the last hour of the session.
Trump also announced that the United States will shore up energy markets by buying crude to fill strategic reserves “to the limit.”
Investors had been clamoring for stronger actions by the United States government to combat the economic impact of the virus pandemic. The news that the White House and Congress were close to announcing an agreement on a package designed to reassure Americans, by paying sick wages, free tests and other resources, helped boost the market.
“We’re finally getting to the party a little late, but it’s better to be late than not coming to the party,” said Ryan Detrick, senior market strategist at LPL Financial. He said the stimulus plan should help cushion the financial impact for people and companies.