The S&P 500 rose 1.9%, its fourth straight gain of more than 1%, and is now up 7.4% for the week. That would be its best week since the market was exploding out of the crater created in February and March by panic about the coronavirus pandemic.
Analysts said the gains came as markets saw the upside of political control in Washington, D.C., remaining split between Democrats and Republicans.
The three major U.S. indexes closed out the final trading day of a turbulent October with more losses, capping a wretched week marked by a record surge in coronavirus infections, dashed hopes for an economic rescue deal before the election and renewed fears of a new wave of business disruptions.
The sell-off began two weeks ago but intensified Monday. It has been triggered by a surge in coronavirus cases and the fact that the White House and Democrats are at an impasse over relief talks.
Three major U.S. stock indexes tumbled at least 3.4% on Wednesday as uncertainty about the economy, politics and public health drove investors from the market.
The Columbus-based engine maker’s third-quarter revenue and net income rebounded better from pandemic-related lags than analysts had expected.
The S&P 500 fell 1.9% Monday to 3,400.19 points, deepening its losses from last week. The Dow Jones Industrial Average fell 2.3% to 27,685.38 points, and the Nasdaq dropped 1.6% to 11,358.94 points.
Wall Street has turned cautious this week amid a confluence of worrisome trends for the economy, which is still hampered by the pandemic.
Big Tech stocks, including Apple and Microsoft, powered much of the gains. Their businesses have proven to be practically impervious to the pandemic, unlike companies that would benefit from a strengthening economy.
The Dow Jones industrial average dropped 375.88 points, or 1.3%, to 27,772.76. It had been up by more than 200 points before Trump’s announcement.
Wall Street rallied Monday as hopes for economic aid from Washington, D.C., helped it recover all of its knee-jerk losses after learning President Donald Trump tested positive for the coronavirus.
Big swings have become typical recently, as investors handicap the chances of a deal on Capitol Hill to send more cash to Americans, restore jobless benefits for laid-off workers and deliver assistance to airlines and other industries.
The settlement, the largest ever imposed for this type of fraudulent activity, known as spoofing, resolves investigations by the Justice Department, the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Big Tech stocks did the heaviest lifting. And several companies announced big mergers and acquisitions, which helped to push markets higher.
The S&P 500 came within striking distance of a 10% drop from its all-time high earlier this week, what Wall Street calls a correction. Friday’s gains reflect, in part, traders taking advantage of the selling to snap up stocks at lower prices.
The selling, which accelerated in the afternoon, was widespread, though technology stocks accounted for the biggest losses. The decline deepens the benchmark index’s September slide to 7.5% after a five-month rally.
Tuesday’s market rebound has been the exception this month. Wall Street has suddenly lost momentum in September following months of powerful gains that returned the S&P 500 to a record.
Wall Street has been shaky this month, and the S&P 500 has dropped 8.4% since hitting a record Sept. 2 amid a long list of worries for investors.
The financial sector was hit hard Monday following a report alleging that a number of banks have continued to profit from illicit dealings with disreputable people and criminal networks
The selling was widespread, with eight of the 11 sectors that make up the benchmark index ending the day lower. The sectors that include Amazon, Facebook and Apple took the heaviest losses.