US stocks rise for the day, but end the week deeply in red

All three major US indexes suffered their biggest weekly percentage declines since March 20.

The United States Federal Reserve's indication earlier this week of a long road to recovery and rising COVID-19 cases in the US cast a pall over investor optimism about a swift economic rebound [File: Bloomberg]
The United States Federal Reserve's indication earlier this week of a long road to recovery and rising COVID-19 cases in the US cast a pall over investor optimism about a swift economic rebound [File: Bloomberg]

United States stocks ended higher on Friday as bargain hunters stepped back into the market following sharp losses a day earlier, but all three major indexes suffered their biggest weekly percentage declines since March 20.

The Dow Jones Industrial Average rose 1.90 percent to end at 25,603.86. The widely used gauge of US retirement and education savings accounts, the S&P 500, gained 1.31 percent. The tech-heavy Nasdaq Composite added 1.01 percent.

“The market’s directionally being driven by headlines right now, and the current headlines are that we’re seeing an uptick in coronavirus cases around the country, which is not what the market was hoping for,” said Ken Kamen, President of Mercadien Asset Management.

The US Federal Reserve’s indication earlier this week of a long road to recovery and rising COVID-19 cases in the US cast a pall over investor optimism about a swift economic rebound.

“We’ve seen a pretty big down move, and you’ve seen some retrenchment of that move,” said Rob Haworth, senior investment strategist at US Bank Wealth Management.

Earlier this week, the tech-heavy Nasdaq confirmed it had been in a bull market since March 23, and the S&P 500 briefly turned positive on the year. On Friday, the S&P 500 closed above its 200-day moving average, a closely watched technical level that was last at about 3,013, after moving above and below the level.

Photoshop maker Adobe Inc rose after posting a better-than-expected quarterly profit, driven by strong demand for its cloud software.

US West Texas Intermediate crude rose 2.4 percent, to settle at $37.12 a barrel. Brent crude gained 2.6 percent, to settle at $39.72 a barrel.


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