Stocks rallied on Wall Street on Friday, a day after the worst US market crash since Black Monday in 1987.
The three main indices doubled their gains for the day to end up closing 9% after President Trump’s speech declaring a national emergency. The president said that he is releasing $ 50,000 million 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 largest single-session increase since October 2008.
However, the three indicators say goodbye to one of the worst weeks in the history of the New York stock market, in which they have broken the bullish cycle that has lasted since 2009: the Dow together lost 10.4% in the last five days, the The S&P 500 is 8.8% and the Nasdaq is approximately 8.2%.
It was the end of a brutal week in which everyone seemed to want to sell and dump their papers in search of safer investments, as the spread of the coronavirus increased fears of a global recession. But at 3 p.m. it was news that President Trump would make the announcement and this prompted 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 top.”
Investors had been clamoring for stronger action from the US government to combat the economic impact of the virus pandemic. News that the White House and Congress were close to announcing an agreement on a package aimed at reassuring Americans, by paying sick wages, free tests and other resources helped boost the market.
“We’re finally running a little late to the party, but it’s better to be late than not come to the party,” said Ryan Detrick, senior market strategist at LPL Financial. He said the stimulus plan should help cushion the financial impact for individuals and businesses.