Spencer Platt | Getty Images
Around 6 a.m. ET Friday, Dow Jones Industrial Average futures implied an opening drop of more than 500 points. S&P 500 and Nasdaq 100 futures also pointed to declines at the open. Dow futures briefly traded more than 100 points higher shortly after the 6 p.m.
The Dow rallied more than 1,300 earlier on Thursday, or 6.4%, to cap off its biggest three-day gain since 1931. The 30-stock average is now up more than 20% over the past three sessions. The S&P 500 also rallied more than 6% and is now up over 20% since Monday’s close as well.
Stocks got a boost after the Senate passed a $2 trillion economic stimulus bill aimed at mitigating the economic damage from the
Comments from Federal Reserve Chairman Jerome Powell also gave stocks a boost Thursday.
“We still have policy room in other dimensions to support the economy,” Powell said on NBC’s “TODAY” show. “We’re trying to create a bridge from a very strong economy to another place of economic strength.”
A massive spike in weekly jobless claims could not halt the market’s blistering run higher on Thursday. The Labor Department reported that jobless benefit claims had soared to 3.28 million last week, easily eclipsing the previous record of 695,000.
“Even though equities were squeezed higher into the close, credit markets continue to diverge substantially,” said Ken Berman, strategist at Gorilla Trades. “You could almost smell the burning shorts on Wall Street [Thursday], but as credit spreads remain wide, one has to wonder how much ‘real’ buying is behind this week moves, besides the bailout-induced short-covering.”
Gregory Faranello, head of U.S. rates trading at AmeriVet Securities, said he’s taking the surge in equities with a grain of salt.
“I wouldn’t necessarily take the price action in the risk markets right now to be a true reflection that this is over,” he said. “This is going to be an economic fallout. We’re seeing in two weeks what we would normally see maybe in a year and a half or two years.”
The number of global coronavirus cases has risen to more than 510,000, according to data from Johns Hopkins University. In the U.S. alone, more than 75,000 cases have been confirmed.